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galina1969 [7]
3 years ago
15

Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expecte

d to cost $250,000 and have a useful life of five years. The system yields an incremental after-tax income of $72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. A machine costs $170,000, has a $13,000 salvage value, is expected to last eleven years, and will generate an after-tax income of $39,000 per year after straight-line depreciation.
Business
1 answer:
Fynjy0 [20]3 years ago
4 0

Answer:

The operating system has payback of 3.47 years

The machine has a payback of 4.36 years

Explanation:

Payback period is the  length of time taken for the initial investment to repay itself.

The project after the payback period would begin to yield returns on the investment.

Payback period=Initial investment/after-tax income per year

For the operating system the initial investment is the cost  of $250,000

after-tax income is the incremental amount of $72,115

payback period=$250,000/$72,115=3.47 years

The machine has an initial capital outlay of $170,000

after tax income of $39,000

payback period=$170,000/$39,000=4.36 years

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Answer:

C) common stockholders, but after that of bondholders.

Explanation:

Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.  

The preferred shareholder is given preference for the distribution of dividends, which is higher than the common stock. It is paid as per the discretion of the company´s directors. Instead, they have limited right and they do not vote for corporate governance like a common stockholder. In the case of the dissolution of the company, the preferred shareholders will still receive payment due to them in terms of dividends. They have a feature of both bonds and equity stockholders.

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3 years ago
Dealing with the fact that certain aspects of any management situation are more important than others is called
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Answer:

Recognition of priorities

Explanation:

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Management is a profession and as such skill set to recognizing when some aspects of management becomes important than others and when some goals need to be given more attention to achieving the overall organizational goals can describe as Recognition of priorities.

Recognition of priorities brings some other important aspects of management into focus leaving out the less important ones cancelled or put on hold so as to save time and maximize labor efficiency.

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The answer is A.- Roads, Mail delivery, and education
5 0
2 years ago
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What term is used to describe a technical, physical, or administrative process designed to reduce risk?
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Answer:

Control

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Control in management as well as organization is very essential, it is very crucial for organization to achieve their goals. Control helps in the area of taking corrective measures whenever the needs arrises. It involves using technical as well as physical method in regulation of activities within an organization which will later reduces risk. It should be noted that control is

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3 years ago
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The correct answer would be option A, Frank should share the culture of the company through stories, rites, and rituals.

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Frank is in the furniture business for so long. Now he is retiring, and he wants his business to be persuaded successfully in the future as well. He is selling his store to people who have no roots in the community. He wants to share the secret of his success to the new owner.

So to make the new owner understand the secret of success, Frank should share the culture of the company by telling the new owner, stories, rites and rituals of the company which made his business successful.

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