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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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A company has a market capitalization of $20,000,000. It has 30% of its market cap sold under preferred stock and 70%

Kruka [31]

Answer: $6,000,000

Explanation:

Hi, to answer this question we simply have to multiply the total market capital of the company (20,000,000) by the percentage under preferred stock (30%) in decimal form.

Mathematically speaking:

20,000,000 x (30/100) = $6,000,000

Feel free to ask for more if needed or if you did not understand something.

6 0

3 years ago

7.37 For the net cash flow series, (a) determine the number of possible i* values using the two sign tests, (b) find the EROR us

nlexa [21]

Answer:

The answer is 25.19% .

Note: The values were not stated for the net series cash flows, during my research and i found the complete question and solved it.

Explanation:

From the question given,

The first step is to make use of a table for the net cash flow series

Year 1 2 3 4 5 6

Net cash flow $4100 $2000 $7000 $12000 $700 $800

Then,

Solution : MIRR is defined as modified internal rate of return, It accounts for the positive cash flows with reinvestment by using re-investment rate and negative cash flows are calculated at their present values to keep the fund aside by using finance rate.

As given also reinvestment rate = 20% and finance cost rate = 10%.

Now, from the table given of cash flows, we will calculate the future value of all cash flows in year 6.

FV = 4100*(1+0.20)^5 + 12000*(1+0.20)^2 + 800*(1+0.20)^0 = $28282.11

Now,

By applying the rate of we will computer teh PV of -ve cash flows :

PV = -2000/(1+0.1)^2 + -7000/(1+0.1)^3 + -700/(1+0.1)^5 = -$7346.73

Now MIRR can be calculated by using the formula , MIRR = \√[n]{FV(positive cash flows/PV of negative cash flows)}-1 = \√[6]{28282.11/7346.74)}-1

MIRR = 1.2519-1 = 0.2519 or 25.19%

Therefore, the only value Possible = 25.19% in this case.

5 0

3 years ago

In a growing number of jurisdictions, when a tenant moves out of leased premises before the term of the lease expires, the landl

Travka [436]

Answer:

To mitigate damages

Explanation:

When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.

He is avoiding a situation where the property is to be left unoccupied for a period of time.

Mitigating damages is a way of reducing further loss when one party breaches a contract.

In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.

5 0

3 years ago

Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade.

Varvara68 [4.7K]

Answer:

Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade. Its currency is the are. Potential output Is 600 billion arcs (Scenario: Fiscal Policy) Look at the scenario Fiscal Policy. If actual output Is 500 billion arcs, to restore the economy to potential output government should by 25 billion arcs.

increase taxes

Explanation:

8 0

4 years ago

The net operating loss (NOL) provisions of the Internal Revenue Code a.Are primarily designed to provide relief for trade or bus

Amanda [17]

Answer:

The correct answer is letter "B": Are primarily designed to provide relief for trade or business losses.

Explanation:

The Net Operating Loss or NOL was enacted to offset the differences between taxpayers' deductions due to progressive rates involved in tax calculations. The excess accounted are used as part of tax payment for the company's future tax periods. NOLs could be the result of theft, confiscation or trades. Thus, NOL provisions attempt to partly cover those business losses.

7 0

4 years ago