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
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

You might be interested in
The Mixing Department’s output during the period consists of 20,000 units completed and transferred out, and 5,000 units in en
Zigmanuir [339]

Answer:

Materials = 23,000 units

Conversion Costs = 23,000 units

Explanation:

Note that the weighted-average method is being used to calculate the equivalent units.

Using this method, we are interested only in calculating equivalent units in units that were completed and transferred and units of ending work in process.

<u>Calculation of equivalent units of production for Materials and Conversion Costs.</u>

Materials

Completed and transferred (20,000 units × 100%)     20,000

Ending Work In Process (5,000 units × 60%)                 3,000

Equivalent units                                                              23,000

Conversion Cost

Completed and transferred (20,000 units × 100%)     20,000

Ending Work In Process (5,000 units × 60%)                 3,000

Equivalent units                                                              23,000

4 0
3 years ago
When Benjamin purchased a camera at Best Buy, the cashier asked him for his home zip code. Which of the following approaches was
Anna11 [10]

Answer:

The correct answer is E) Customer spotting .

Explanation:

The detection of needs in the sale is the third step, of the six that must be taken to increase the possibilities of selling.

The detection of needs consists specifically in asking your client a series of questions that you have to have prepared in advance, in order to discover:

  1. What are the real needs they have
  2. If the products or services you have in your portfolio are suitable for what you need.

Not carrying out a correct detection of needs forces you to walk blindly and thus lose many chances of achieving success.

Keep in mind, that it is in this step where it is most important that you pay attention and listen to what the client has to say.

4 0
3 years ago
You deposit $1,500 in a bank where you have a savings account. The bank
skad [1K]
Interest rate risk

Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.
8 0
3 years ago
Your restaurant plans to spend $1,000 on social media ads. Your average meal sells for $10 and food cost is 30%. How many additi
Romashka [77]

Answer:

Number of meals = 100

Explanation:

The amount that the restaurant plan to spend on ads = $1000

The average selling price of meal = $10

The cost of food is = 30%

At breakeven, the total revenue is equal to total cost.

Total cost of advertsing = total revenue  

So, the number of meals = $1000 / 10 = 100

5 0
3 years ago
Emily has recently learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated
Brums [2.3K]

Answer:

D. Identify the critical path.

Explanation:

Emily has recently learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated the crash cost per unit and knows the maximum units each activity can be reduced. The next step is to Identify the critical path.

3 0
3 years ago
Other questions:
  • Marcus volunteers for an organization that cleans up
    12·2 answers
  • If the price of butter increases, then the demand for margarine will likely _____. increase decrease
    15·1 answer
  • When shopping for their brother, jack and james are presented with a red shirt by the sales person. while jack likes the shirt,
    10·2 answers
  • Select examples of public goods provided to everyone by the government
    15·2 answers
  • On January 1, 2018, Solo Inc. issued 1,000 of its 8%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July
    15·1 answer
  • Maria wants to be a teacher when she graduates from college and hopes to marry another teacher so they can get their summers off
    9·2 answers
  • Chevron Corporation is one of the largest integrated oil companies in the world. Its management is assessing the world marketpla
    12·1 answer
  • A(n) _______ is a person who engages in leadership activities but whose right to do so has not been formally recognized.
    8·1 answer
  • Example 31: S borrows 5,00,000 to buy a house. If he pays equal instalments for 20 years
    11·1 answer
  • Match the example with the business structure that makes sense for it. To match the items, click the example, and then click the
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!