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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.  

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Some countries have high minimum wages and require a lengthy and costly process to get permission to open a business Select one:
Pani-rosa [81]

Answer:

b. Reducing the minimum wage and the time and cost to open a business would shift the long-run aggregate supply curve to the right

Explanation:

Minimum wage is a wage set by the government, to pay for laborers. Wages below this is illegal. Wages are also a major cost to any firm. When they have been reduced, cost of production is likely to fall. Cost of production is a factor affecting supply. When cost of production falls, supply shifts right.

This is explained as that when cost of production falls, businesses can now make higher profits. This acts as a motivation for many other firms to also enter into the market. Therefore, supply is likely to rise in the long-run, shifting the supply curve to the right.

Time and cost to open a business is another factor affecting supply. When the time and cost is high, it discourages new firms because they do not want to undergo the hassle of submitting many legal documents or may not have enough funds to pay for all the costs. However, when the cost and time taken falls, more firms will be willing and able to enter into the market. Thus, the supply curve shifts right in the long run, increasing quantity supplied.

6 0
2 years ago
Gilbert's expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in A
sveticcg [70]

Answer:

$61,500.

Explanation:

Given that,

Beginning cash balance on September 1 = $7,500

Cash receipts from credit sales made in August:

= $150,000 × 70%

= $105,000

Cash receipts from credit sales made in September:

= ($150,000 × 1.20) × 30%

= $54,000

Cash disbursements from purchases made in August:

= $100,000 × 75%

= $75,000

Cash disbursements from purchases made in September:

= $120,000 × 25%

= $30,000

Ending cash balance September 30:

= Beginning cash balance + Cash receipts from credit sales made in August + Cash receipts from credit sales made in September - Cash disbursements from purchases made in August - Cash disbursements from purchases made in September

= $7,500  + $105,000  + $54,000  - $75,000  -  $30,000

= $61,500.

6 0
3 years ago
Which category would be the combination of employee benefits in payment for under
Bess [88]

The category would be,

1.) House Rent allowance

2.) Medical Allowance

3.) Conveyance Allowance

4.)Basic Salary


8 0
2 years ago
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following ord
Dahasolnce [82]

Answer:

Find the detailed answer below

Explanation:

January 1     300 units at $5      $1,500

January 8     500 units at $9       $4,500

January 29 910 units at $10       $9,100

1,110 units are available at the end of the month. That means 600 units were sold

A. Under FIFO

1. Cost of goods available for sale:

        $1,500 + $4,500 + $9,100 = $15,100

2.   Cost of goods sold

         300 units at $5      $1,500

         300 units at $9      $2,700

          Total             $4,200

3. Ending inventory

           200 units at $9       $1,800

           910 units at $10      $9,100

           Total              $10,900

B. Under LIFO(Last in First Out)

1.  Cost of goods available for sale:

        $1,500 + $4,500 + $9,100 = $15,100

2.  Cost of goods sold

        600 units at $10      $6,000

        Total       $6,000

3. Ending inventory

       310 units at $10      $3,100

      500 units at $9        $4,500

      300 units at $5        $1,500

      Total        $9,100

C. Weighted average cost flow assumption: Cost of goods available for sale / total units

1. Cost of goods available for sale:

     $1,500 + $4,500 + $9,100 = $15,100

2. Cost of goods sold

      $15,100 / 1,710 = $8.83

      $8.83 x 600 = $5,298

3. Ending inventory

       $8.83 x 1,110 = $9,801.3

Under perpetual Inventory System

Between January 9 and January 28. The prevailing price that will be used to sell the inventory will be the price at January 8($9)

1. Cost of goods available for sale:

$1,500 + $4,500 + $9,100 = $15,100

2.  Cost of goods sold

        600 units at $9     $5,400

        Total           $5,400

3. Ending inventory

       1,110 units at $9      $9,990

      Total            $9,990

6 0
2 years ago
Assume that the short-run cost and demand data given in the tables below confront a monopolistic competitor selling a given prod
REY [17]

Profit is maximized when Q = 4 and P = $40, with maximum profit = $90.

<u>Explanation:</u>

(a)  (i) Marginal cost (MC) = Change in Total cost (TC) by Change in output (Q)

(ii) Total revenue (TR) = Price (P) into Q

(iii) Marginal revenue (MR) = Change in TR by Change in Q

(iv) Profit = TR - TC

Therefore:

Q  TC  MC  P  TR  MR  PROFIT

0  25   60  0   -25

1  40  15  55  55  55  15

2  45  5  50  100  45  55

3  55  10  45  135  35  80

4  70  15  40  160  25  90

5  90  20  35  175  15  85

6  115  25  30  180  5  65

7  145  30  25  175  -5  30

8  180  35  20  160  -15  -20

9  220 40  15  135  -25  -85

10  265 45  10  100  -35  -165

When Q = 4, MR = $25 and MC = $15, so MR > MC. When Q = 5, MR = $15 and MC = $20, so MR < MC. Therefore,  

Profit is maximized when Q = 4 and P = $40, with maximum profit = $90.

(b)  In the long run, new firms will enter the market by being attracted by positive short run profit. Therefore in long run, demand for individual firm will decrease, price for individual firm will decrease and profit will decrease until each existing firm earns zero economic profit.

4 0
2 years ago
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