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3 years ago

If a payback period for a project is greater than its expected useful life, the ___________.

Business

1 answer:

just olya [345]3 years ago

4 0

Answer: d. Entire initial investment will not be recovered.

Explanation:

The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.

Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.

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The benefits of operating a business as a limited liability corporation include all of the following EXCEPT ________.

N76 [4]

The benefits of operating a business as a limited liability corporation include all of the following EXCEPT the business cannot be sued by another party. In an LLC you are not able to be sued by another party. An LLC is similar to a partnership and a sole-prioprietorship with the interworking of a corporation. In an LLC there is a tax break given by following the partnership and sole-proprietorship methods. Due to the tax breaks, an LLC is a popular business model that many small businesses use.

5 0

3 years ago

Vivi Corporation had net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10

Leto [7]

Answer:

2.23 is the price earnings ratio.

Explanation:

Firstly we must find the Earnings per share for this problem as it is needed to calculate the price earnings ratio so earnings per share = (Net income)/(Number of shares outstanding).

we are given net income of $401000 then to obtain number of shares outstanding for 2015 are $267000/$10 as we saw the company's common stock account balance all year long was that value of which each share has a par value of $10, then we get outstanding shares which are 26700 now we calculate the earnings per share (EPS) by using the above formula with substituting the above mentioned values :

Earnings Per Share= $401000/26700

= $15.01872659

now we will use the Price Earnings Ratio formula which is

Price Earnings Ratio = (current share price)/(earnings per share )

we have been given a current share price of $33.50 now we will use the earnings per share which was calculated above.

Price Earnings Ratio = $33.50/$15.01872659

= 2.230548628 then we round off the answer to two decimal places

Price Earnings Ratio = 2.23

4 0

3 years ago

Claxton Company purchased a van on January 1, 2018, for $820,000. The estimated life of the van was five years, and its estim

vaieri [72.5K]

Answer:

The depreciation expense for 2020 is $215,100

Explanation:

Given

Claxton Company purchased a van on January 1, 2018, for $820,000.

Useful life = 5 years

Residual value = $103,000

Annual depreciation = ($820,000- $103,000)/5

= $717,000/5

= $143,400

At the beginning of 2020, the asset would have been depreciated for 2 years (2018 and 2019)

Net book value = $820,000 - 2($143,400)

= $533,200

Since the residual value remains the same after a revision of the estimated useful life from 5 years to 4 years

The asset would only have 2 years left for depreciation.

Annual depreciation = ($533,200 - $103,000)/2

= $430,200/2

= $215,100

5 0

3 years ago

Roofing Issues. Sally agrees to roof a house for Bob. After doing his research, Bob chooses Sally based on her great reputation

expeople1 [14]

Answer:

C. Spencer will win because regardless of whether Glen was acting within the scope of his employment, Sally is liable for his negligence

Explanation:

Spencer will win the lawsuit and Sally is liable for negligence.

This is because, Sally was the person originally hired to do the roofing job.

She hired other workers to help her with the job, so she's liable to their actions and inactions.

Sally is operating under a working agreement (contract) and has already charged a fee of $10,000 so any punitive damages would be her responsibility.

Spencer was moving around and Glen threw some roofing shingles without any word of warning to people that might be in harm's way. So for Glenn's actions, Sally is liable for his negligence.

5 0

3 years ago

Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the foll

Elan Coil [88]

Answer:

Cost of land= $1,124,100

Explanation:

According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs necessary to bring and make it ready for the intended use.

These costs include purchase cost, fees and commission associated with the purchase transaction.

Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.

However, remember that land is not depreciated because it has an infinite life span.

So using the historical cost principle the cost of the land

Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300= 1,124,100.00

Cost of land= $1,124,100

6 0

3 years ago