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Daniel [21]
4 years ago
13

A company with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to

reduce operating costs by $15,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.):
Business
1 answer:
Masteriza [31]4 years ago
4 0

Answer:

Payback = 4 years

Explanation:

If a project has equal annual cash-flows, the payback period can be  calculated using the formula:

Payback=\frac{CostOfMachine}{AnnualCashflows}

The reduction in operating costs resulting from the purchase of the machine is treated as cash inflows for capital investment decisions. As such, annual cash inflows to be used in the formula above =$15,000 each year.

Payback=\frac{60,000}{15,000}=4years

It will take the company 4 years to recover the initial investment.

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In order to communicate clearly with a resident who has hearing loss, the resident assistant should:
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The resident assistant should be patient and try to listen carefully when it comes to understanding thr person's needs and wants.
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3 years ago
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4 0
2 years ago
Webster Corporation's monthly projected general and administrative expenses include $5,000 administrative salaries, $2,400 of ot
algol [13]

Answer:

The total general and administrative expenses to be reported on the general and administrative expense budget per month is $8,800

Explanation:

The computation of total general and administrative expense is shown below:

= Administrative salaries + Other cash administrative salaries + depreciation + Monthly interest on an outstanding bank loan

= $5,000 + $2,400 + $1,350 + $50

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