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galina1969 [7]
2 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]2 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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Suppose an individual makes an initial investment of $2,000 in an account that earns 8.4%, compounded monthly, and makes additio
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which would be considered assets? check all that apply.own a guitarchecking accountstudent loanstocks and bondsmonthly rentown a
Harrizon [31]

The correct options are

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A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset. The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current. They are acquired or produced in order to raise a company's worth or improve the operations of the company. Whether it's industrial equipment or a patent, an asset may be viewed of as anything that, in the future, can create cash flow, lower expenditures, or increase sales. A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset.

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1 year ago
Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded s
kiruha [24]

Answer:

Future Value= $156,901.16

Explanation:

Giving the following information:

Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually.

To calculate the future value of this investment, we need to use the following formula:

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3 years ago
Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budget
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If the actual sales volume is 5000 units,budgeted sales volume is 4500, actual selling price be $15 per unit and the budgeted price per unit be $15.75 per unit then the sales price variance is -$3750.

Given that actual sales volume is 5000 units,budgeted sales volume is 4500 units, actual selling price be $15 per unit and budgeted price per unit be $15.75 per unit.

We are required to find the sales price variance of the data.

Actual Sales volume = 5,000 units

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So, calculation of the sales price variance is given below:-

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Hence if the actual sales volume is 5000 units,budgeted sales volume is 4500, actual selling price be $15 per unit and the budgeted price per unit be $15.75 then the sales price variance is -$3750.

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