Answer:
C) 4.2 years
Explanation:
The computation of the payback period is as follows;
As we know that
Payback Period = Initial cost ÷ Annual net cash flow
Here
Initial cost = $278000
Annual net cash flow = Incremental after tax + Depreciation per year
where,
Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life
= ($278,000 - $30,000) ÷ 8 years
= $31,000
Annual net cash flow is
= $35000 + $31000
= $66000
So,
Payback Period is
= $278000 ÷ $66000
= 4.2 Years
Answer:
c. $1700.
Explanation:
The computation of the uncollectible account expense is shown below:
= Account receivable × estimated percentage - unadjusted balance
= $200,000 ×1% - $300
= $2,000 - $300
= $1,700
hence the uncollectible account expense is $1,700
Hence, the correct option is c.
The same would be relevant
The answer is <span>Intangible benefits</span>
Answer:
b. cost of goods purchased
Explanation:
Cost of goods available for sale is the maximum amount of goods or services a company can sell during a given period which is usually a fiscal year.
Cost of good available for sale = beginning inventory + Cost of goods purchased + Cost of goods produced.
I hope my answer helps you.
Answer:
Option D You should accept the second offer because it has the larger net present value.
Explanation:
The option 2 must be valued in today's value (Present Value), so for this reason we will have to discount the cash flow to bring it to Year zero (Now).
Present Value of $70,000 = $70,000 / (1.115)^2 = $56,305
Present Value of the offer = $56,305 + $35,000 = $91,305
As the offer is more in value today from the option one which stands at $89,500 so the better option is Option D $91,305.