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
xxTIMURxx [149]
3 years ago
9

You are considering a project with an initial cost of $7,500. What is the payback period for this project if the cash inflows ar

e $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively? A. 3.21 years B. 3.28 years C. 3.36 years D. 4.21 years E. 4.29 years
Business
1 answer:
Sliva [168]3 years ago
4 0

Answer:

A. 3.21 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $7,500

In year 1 = $1,100

In year 2 = $1,640

In year 3 = $3,800

In year 4 = $4,500

If we sum the first 3 year cash inflows than it would be $6,540

Now we deduct the $6,540 from the $7,500 , so the amount would be $960 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $4,500

So, the payback period equal to

= 3 years + $960 ÷ $4,500

= 3.21 years

In 3.21 yeas, the invested amount is recovered.  

You might be interested in
Describe the two primary functions of financial accounting
andreev551 [17]

Answer: Measurement and presentation of financial performance

Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.

The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.

Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.

6 0
3 years ago
which of these statements regarding unit investment trusts (uits) is correct? a) units in a uit are priced in the secondary mark
MA_775_DIABLO [31]

Units are actively managed, as portfolio managers typically attempt to match the return of a stated index

<h3>What is  portfolio manager ?</h3>

A portfolio manager (PM) is a qualified individual tasked with selecting investments and carrying out related tasks on behalf of invested people or organizations. Clients put their money into a retirement fund, endowment fund, or education fund as part of the PM's investing strategy in order to develop it in the future.

PMs are in charge of developing an investment strategy, choosing the right investments, and properly allocating each investment to an investment fund or asset management vehicle. They collaborate with a team of analysts and researchers to carry out these tasks.

An investment manager's objective is to generate a return that is higher than the return anticipated given the level of risk. Investors can keep track of this return through performance reports given by the PM on a weekly, monthly, quarterly, or annual basis. A performance benchmark or a comparison of the manager's investment approach to an index may be established.

To know more about  retirement fund

brainly.com/question/14826786

#SPJ1

6 0
1 year ago
A company purchased 120 units for $ 20 each on January 31. It purchased 170 units for $ 30 each on February 28. It sold 170 unit
Zolol [24]

Answer:

$2,730

Explanation:

The computation of the Cost of Goods Sold is shown below:-

Cost of goods sold =  Purchase × Each Unit + (Sold units - Each unit) × Purchase units

= 120 units × $20 + 110 units × $30

= $2,400 + $330

= $2,730

Therefore we have calculated the cost of goods sold from First in the first-out method by applying the above formula.

4 0
2 years ago
The objective of a competitive strategy is to establish a competitively powerful value chain. grow revenues at a faster annual r
asambeis [7]

Provide buyers superior value relative to the offerings of rival sellers in order to attain a competitive advantage.

<h3><u>Explanation:</u></h3>

The strategy or the plan that is being used by a company in a long term for the purpose of gaining advantage over the competitors of the similar field refers to the Competitive Strategy. The main aim of using competitive advantage in the creation of a defensive position so that the competitors will not compete with the company and also aims in attaining higher return on investment.

The types of competitive strategies are differentiation strategies,focus strategies and  Cost-leadership strategies. Thus competitive strategies aims in providing superior value to the offerings given to the buyers and gaining a competitive advantage.

7 0
2 years ago
Which is not a type of economy?
astraxan [27]

Answer:

agrarian economy

Explanation:

Agrarian economy is not a type of economy as there is no one single country were all its GDP is produced just by agricultural trade, the most relevant concept is <u><em>agrarian society</em></u>, and in this the society is highly dependable on agricultural products in order to derive income.

3 0
3 years ago
Other questions:
  • Which feature helps business address customer grievances
    9·2 answers
  • On an aggregate demand and aggregate supply graph, the stagflation of the 1970s can be represented as a
    7·1 answer
  • Larry, a human resources executive at Printopress, caters to the human resources needs of other departments in the company, such
    15·1 answer
  • For many​ years, the International Nickel Company of Canadathe International Nickel Company of Canada essentially operated as a
    6·1 answer
  • Start-ups are usually
    9·2 answers
  • "Markets are not always perfectly competitive and some firms consistently outperform industry averages. This suggests that firm
    10·1 answer
  • PFC Kim's living expenses are $1200/month. Her base pay is $1546.80 and she also receives $6.90 in partial BAH and BAS of $367.9
    8·1 answer
  • Which is the best option for people who need the items immediately but cannot pay cash now? choosing installment plans for both
    8·1 answer
  • In the text box below, enter one of your purchase goals.
    10·1 answer
  • If a firm's marginal revenue is below its marginal cost, an increase in production will usually: a. increase profits. b. leave p
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!