Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
Answer:
C) a positive result from regulatory and economic environmental forces.
Explanation:
In the short run the whole economy will benefit, more American jobs will be created, consumers will probably get good cars at even lower prices, but on the long run the scenario may not be that good for everyone. If Toyota builds the plant, it will be the result of economic and political pressures, and that is a game that two can play, just ask farmers about the trade deal with China.
On the other hand, this is a type of deja vu (or been there, done that), and it ended up with GM and Chrysler bankrupt and Ford barely surviving. This types of policies were enforced in the 1980s by president Reagan and the famous "Made in the USA" by Bruce Springsteen. Back then Honda had a small factory and Toyota was starting to consider building a plant in the US, Nissan hadn't showed up yet. Fast forward a few years and the only good American vehicles are pickups, the Japanese brands wiped out the rest. The country is full of Camrys, Accords, Civics, Corollas, CRVs and Rav4s. They are great cars, too great for the American car manufacturers to compete against. Who knows, with this type of policies maybe in 10 years the only American car manufacturer left will be Tesla.
This is like playing with fire on top of a fuel truck.
Answer: A cash sale
Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.
Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.
Other option such as IPO or stock for stock might result in increase in value but certainly won't give her liquidity.
Answer:
The correct answer would be, 10 Persons.
Explanation:
If there are 1000 people in the Big Bucks lottery and there is a 1 percent chance of winning 10 dollars prize if all 1000 people buy the lottery ticket of 10 dollars. If every person buys 10 dollar lottery ticket, then the chances of winning people would be calculated as follows:
Total number of People = 1000
Chances of winning the lottery = 1%
So How many people would win 10 dollar lottery = 1000 * 1%
= 1000 * 0.01
= 10 People.
So there are chances that 10 out of 1000 people will win the lottery.
Answer:
The correct answer is letter "A": an economic downturn that persists for more than two consecutive quarters of the year.
Explanation:
Recessions are economic downturns in an economy characterized by the fall growth for more than two consecutive quarters. The most important indicator that determines the economic downturn is the real Gross Domestic Product (GDP). The National Bureau of Economic Research (NBER) is the entity in charge of calling the recession.
