Answer: 2.90 years.
Explanation:
Payback period is the amount of time that it will take a project to pay back or recuperate the initial investment in the project.
This project is making $8,600 a year and had an initial investment of $25,000.
The Payback period is;
= Investment / Annual Cashflow
= 25,000 / 8,600
= 2.90 years.
Answer:
Indirect Labour Cost, Direct Labour Cost
Explanation:
Direct Labour Cost
This is the type of cost incurred or wages paid to workers or employees that directly works on project. For example, laborer, foreman, painters, machine operators, delivery man etc. all belongs to this category. They are wages paid to the category of employees or workers who physically produce products.
Indirect Labour Cost
These are wages paid to those group of workers or employees that perform tasks that do not directly contribute to the production of goods or performance of services. For example, we have accountants, security guards, administrative officers, supervisors, inspectors and so on. It is also known as Overhead cost. They are not involved in the active part of conversion of raw materials into products.
Answer:
The answer is: The variable maintenance cost is $0.21 per machine hour
Explanation:
To find the variable maintenance cost per machine hour we must divide the total amount spent in maintenance costs by the total amount of production hours.
Since both production hours and maintenance cost vary so much, we must high-low method:
variable maintenance cost = (highest maintenance cost - lowest maintenance cost) / (highest machine hours - lowest machine hours) =
= ($10,500 - $8,600) / (23,000 - 14,000) = $0.21 per machine hour
He should try to maintain a high GPA because 9th grade is an important year
Answer:
Type A is 7%, type b is 11%
Explanation:
We have these two firm's as type a and type b
For type A
Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%
For type B
= Risk free rate of 5% + risk free rate of 6% = 11%
I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.
