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
yawa3891 [41]
3 years ago
12

A piece of equipment costs $30,000, and is expected to generate $8,500 of annual cash revenues and $1,500 of annual cash expense

s. The disposal value at the end of the estimated 10-year life is $3,000. Ignoring income taxes, the payback period is:
A. 3.53 years
B. 3.86 years
C. 4.29 years
D. 6.98 years

some other period of time not noted
Business
1 answer:
Mrac [35]3 years ago
6 0

Answer:

C. 4.29 years

Explanation:

The computation of the payback period is shown below:

Payback period = Initial investment of the equipment ÷ Cash flows

where,

Initial investment = $30,000

And, the cash flows is

= $8,500 - $1,500

= $7,000

So the payback period is

= $30,000 ÷ $7,000

= 4.29 years

By dividing the initial investment by the cash flows we can get the payback period and the same is applied above.

You might be interested in
Heidi Company is considering the acquisition of a machine that costs $420,000. The machine is expected to have a useful life of
Sonja [21]

Answer:

d. 3.5 years

Explanation:

We know that payback period is the estimated length of time it takes cash inflow from a project to recover back the cash outflow.

It is to be noted that the payback period makes use of cash flow and not profit, hence denoted by;

Payback period = Initial cost / Annual net cash inflow

Given that;

Initial cost = $420,000

Annual net cash inflow = $120,000

Therefore,

Payback period = $420,000 / $120,000

Payback period = 3.5 years

6 0
3 years ago
If Real GDP increases at an annual rate of 3 percent and velocity increases at a rate of 2 percent per year, then rules-based mo
inn [45]

Answer:

a. 1

Explanation:

Rules-based monetary policy advocats would most likely set the annual money supply growth rate at 1%. The money supply refers to the total value of money that is available in an economy at a particular point in time. This usually includes currency in circulation as well as demand deposits. However, the exact definition of "money supply" can vary depending on the central bank that manages it.

8 0
3 years ago
Red Carpet Inc. is a small apparel store started by an aspiring designer. The store needs to compete against larger, well-establ
KatRina [158]

Answer:

The answer is: Red Carpet should try to focus on niche market segments.

Explanation:

A niche market is part of a greater market, but its focus is set on very specific products. The niche market has very specific market needs that need to be targeted by very specific products.

Usually niche markets are targeted by high priced products since normal broad range products or services will not satisfy their specific needs. For example, vegan restaurants are more expensive than McDonald's or Pizza Hut.

Since niche markets are small, usually big multinational corporations don't pay attention to them.

5 0
3 years ago
If you stare at a red patch and then look at a red apple, will your experience of the redness of the apple be stronger or weaker
Mashutka [201]
<span>If you stare at a red patch and then look at a red apple, your experience of the redness of the apple will be  weaker. 
</span>The reason is because staring at red patch fatigues red portion of red-green channel. Hering’s opponent-process model predicts this situation. The theory was <span>first developed by Ewald </span>Hering<span>.</span>
3 0
3 years ago
Read 2 more answers
Drag each tile to the correct box.
vitfil [10]
I need points sorrybsjsjhsenejwvwnwjemehshsuisksns
5 0
3 years ago
Other questions:
  • Is it easy to start or stop a mma investment
    9·1 answer
  • The Wacky Widget company has total fixed costs of $100,000 per year. The firm’s average variable cost is $10 for 10,000 widgets.
    14·1 answer
  • Please help me!! due tmrw!!!
    14·2 answers
  • A clothing retailer offers a larger
    8·2 answers
  • Remeber it does not matter what people say about you, bc God loves you. Never think that no one loves you bc someone always will
    13·1 answer
  • Charlotte, a manager for Everyday Beauty Company, has just been given a report showing sales in her region are lower than antici
    7·1 answer
  • Social media experts suggest that you use other means of communicating claims or complaints before turning to social media. Mess
    15·1 answer
  • You're a stand-up Brainly citizen with some pretty impressive skills. Only those active members with excellent reviews and recom
    8·1 answer
  • melanie is currently enrolled in an hmo mapd, and she is talking to sales agent brenda about enrolling in a medicare supplement
    10·1 answer
  • Abercrombie and Fitch is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a st
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!