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yawa3891 [41]
2 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]2 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.

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500* .025=12.05 take that times it by 8 12.50*8=100
Hope this helps and hope it's right good luck have a nice nite
Plz give feed back if wrong or right
5 0
3 years ago
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Masja [62]

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<u>Explanation:</u>

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You have that aptitude, so you gladly express extraordinary scrupulousness as one of the advantages on your resume.

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8 0
2 years ago
Data concerning Pony Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable exp
Luda [366]

Answer:

$18,000

Explanation:

The computation of overall effect on the company's monthly net operating income is shown below:-

                                 Current                 Proposed

Sales                       $800,000               $837,000

                        (200 × 4000)     (200 - 14) × (4,000 + 500)

Variable expenses  $160,000             $180,000

                              (40 × 4000)  (40 × (4,000 + 500))

Contribution margin $640,000            $657,000

Fixed expenses     $531000                 $566,000

                                                  ($531,000 + $35,000)

Net operating

income                  $109,000                $91,000

Decrease in net operating income = Current - Proposed

= $109,000 - $91,000

= $18,000

So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.

8 0
2 years ago
Explain the types of FDI
elena55 [62]

Explanation:

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6 0
2 years ago
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kow [346]

Answer:

B. Increases the expected present value of lease cash flows to the owner

Explanation:

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Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.

Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.

The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.

8 0
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