1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
grigory [225]
2 years ago
9

Assume that a company buys a new machine for $220,000 that has a useful life of five years and a $20,000 salvage value. The new

machine will replace an old machine that can be sold for a salvage value of $10,000. The machine will generate incremental contribution margin of $37,500 per year. The only fixed expense associated with the new machine is its annual depreciation of $40,000 per year. What is the payback period for this investment
Business
1 answer:
Zarrin [17]2 years ago
8 0
  • Payback period of investment- In case of capital budgeting, it refers to the amount of time taken place to recover the amount or cost of investment.
  • Initial cost of investment = Amount invested – Value of salvage sold

                                                 = $ 220000 – 10000

                                                 = $ 210,000

  • Annual Cash inflow = Contribution margin = $ 52500

  • Payback period = Initial cost of investment /Annual cash inflow

                                     =$210000 / 52500

                                     = 4.0 years

  • Answer = 4.0 years

Hence, in four years pay back period for this investment will take place

Learn more about this-

brainly.com/question/14316388

#SPJ10

You might be interested in
Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be
Reil [10]

Answer:<em> Option (E) is correct.</em>

From the given option, the following will reduce Bankston's need to issue new common stock: <em>Increase the percentage of debt in the target capital structure.</em>

With an increase in percentage of debt , there will be a proportional increase in cost of equity and thereby decreasing investment in equity. This will therefore reduce Bankston's need to issue new common stock

6 0
3 years ago
Who hates me? be honest
ipn [44]

Answer:

no one hates you

Explanation:

7 0
2 years ago
Read 2 more answers
Explain how the adjust row amounts feature helps in creating qb accountant budgets
Tpy6a [65]

The adjust row amounts feature helps in creating Quick books accountant budgets as it makes updating budgets much faster and allows for consistency and easy use.

Now you'll start making adjustments. If you're starting your budget from scratch, and therefore the monthly amount is the same, you'll be able to enter the primary month. Then click “Copy Across” and therefore the amount will populate for the complete year. Or, if you have already got data from a previous year, you'll be able to click “Adjust Row Amounts” and choose to extend or decrease the monthly amount by a particular amount or percentage. This makes updating budgets much faster and allows for consistency and easy use.

The adjust row amounts feature helps in creating Quick books accountant budgets as it makes updating budgets much faster and allows for consistency and easy use.

To learn more about this Quick Books Accountants Budgets, visit the following link:

brainly.com/question/24441347

#SPJ4

4 0
1 year ago
Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv
klio [65]

Answer and Explanation:

The consequences of given transactions are as follows

a. Revenues rise by $3.2 million  as the firm received an order

b. Earnings rise by $1.5 million  as the firm received an order and it filled by an orders i,e ($3.2 - $1.7)

c. Receivables rise by $1.80 million  as it determines the remaining balance which ultimately increased the receivable balance

d. Inventory declined by $1.7 million  as the order is filled which ultimately declines the stock

e. The cash would rise by $1.4 million

= Earnings - receivable + inventory

= $1.5 million - $1.80 million + $1.7 million

= $1.4 million

4 0
3 years ago
It usually takes less time to buy a six-pack of Pepsi, a loaf of bread, and a bag of potato chips at a small convenience store (
dybincka [34]

Answer:

The correct answer is the option A: a person with a high opportunity cost of time.

Explanation:

To begin with, the opportunity cost of something is what the person sacrificies in order to be doing that thing. Therefore that when we talk about the opportunity cost of time it refers to what the person sacrificies in order to do something with that time. If the person has a high opportunity cost of time then the sacrificies that he made with that time will be higher than other person that has a low opportunity cost of time, meaning that the time spent by that person is less important than to the one that has a lot of time to spare.  

6 0
3 years ago
Other questions:
  • During regular operating hours, passengers of Fly-Hi airlines arrival at the airport at the average rate of 190 per hour (Poisso
    15·1 answer
  • Effect of junk status on unemployment
    15·1 answer
  • You are a landlord for an office building. You just received a claim letter from a tenant asking for a refund of $2,000 for extr
    6·1 answer
  • Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables
    13·1 answer
  • Which statement best describes an authoritarian style of communication
    5·1 answer
  • Which factors affect the pricing function
    8·1 answer
  • The _____________ represented sweeping changes to the tax code and reframed the computation of employee income tax.
    7·1 answer
  • Why is the national government proritis ing the rebuilding of KZN infrastucture destroyed by the 2021 July unrest and the recent
    12·1 answer
  • A strategy of spreading investments among different industry sectors is
    10·1 answer
  • a human resource professional comes up with a new way to recruit candidates for international positions that will result in more
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!