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
Jobisdone [24]
3 years ago
12

The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would l

ast for 7 years. The annual net operating income from the project would be $82,000, including depreciation of $42,000. At the end of the project, the scrap value of the project's assets would be $27,000. (Ignore income taxes.)
Required:
1. Determine the payback period of the project.2. What will be an ideal response?
Business
1 answer:
Art [367]3 years ago
4 0

Answer:

2.6 years

The appropriate response to carry out the project if the payback period is within the acceptable payback period of the company

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback period = amount invested / cash flow

Cash flows is used in calculating the payback period.

To derive the payback period from net income, add depreciation to net income

$82,000 + $42,000 = $124,000

$321,000 / $124,000 = 2.6 years

I hope my answer helps you

You might be interested in
Charice wants to send an email to her manager. She has some concerns about the work a coworker is doing. Charice has noticed tha
finlep [7]
The approaches would be the best way for Charice to communicate this to her manager is Send an email to her manager requesting a meeting to talk in person about her concerns. Mark the importance level as high. Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions here.

3 0
4 years ago
Read 2 more answers
St.​ Mark's Square is a beautiful plaza in Venice that is often frequented by both tourists and pigeons. Ringing the piazza are
Artist 52 [7]

Answer and explanation:

Location is one of the many factors businesses must consider at the moment of starting operations. Commercial areas tend to have higher rent and property prices. Typically, businessmen deal with it by increasing their products price so they can cover expenditures and make a profit. At the same time, most consumers are willing to pay the higher price for the product because it removes the need for relocation even if it could imply moving one or two blocks away.

5 0
3 years ago
Which of the following statements is correct regarding a cover letter?
Oxana [17]
The cover letter should be short and direct.
5 0
3 years ago
At what rate per cent per annum will 4000 yield an interest of 410 in 2 years?​
andrey2020 [161]

Answer:

5%

Explanation:

The applicable formula is A = P( 1 + r) ^ n

where A= amount: P is the principal, r, interest rate, n time

In this case,

A = principal + interest = Rs 410 { Rs 4000 + Rs410}

P= Rs 4000

r= ?

n= 2

r is?

4410 = 4000(1 + r) ^2

(1 + i)^ 2 = 4410/4000

(1 + i)^ 2 = 1.1025

1 + i = √1.1025

1 + i = 1.05

i = 1.05 - 1

i = 0.05

0.05 × 100 = 5%

5 0
3 years ago
On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land Improvements 1. Building
Leviafan [203]

Answer:

Land (Dr.) $1,800,000

Land Improvements $540,000

Building 2 $660,000

Building 1 demolish expense $346,400

Land grading expense $187,400

Building 3 construction cost $2,242,000

Land 2 improvement cost $168,000

Cash (Cr.) $22,143,800

Explanation:

Mitzu Co. has paid lump sum amount for 2 buildings and land. The building 1 has no value so its value is considered as zero and all the amount will be attributed to land and building 2. The company has also incurred costs for the demolish of building 1 which will be charged in the books of accounts as one off expense.

8 0
3 years ago
Other questions:
  • The _______ test asks the question: is the industry profitable or capable of being profitable?
    11·1 answer
  • If the government removes a binding price floor from a market, then the price paid by buyers will (A) increase, and the quantity
    8·1 answer
  • Diamond's Corporation has an investment in 5,000 shares of Sigmoid Company common stock with a cost of $218,000. These shares ar
    15·1 answer
  • Rahm's credit card issuer calculates interest based on the outstanding
    15·1 answer
  • Morgan Industries is comparing and contrasting its ending inventory value in terms of the three common inventory costing methods
    6·1 answer
  • Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
    10·1 answer
  • Valuing my degree. I went to LSUS for 2 years and did not work. It cost me $35,000 per year (tuition and living). When I graduat
    6·1 answer
  • According to the New York Times, during the mortgage crisis real estate brokers had an incentive to steer borrowers to higher-co
    13·1 answer
  • Mcgahen Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,080 pa
    7·1 answer
  • Nipigon manufacturing has a cost of debt of 9 %, a cost of equity of 11%, and a cost of preferred stock of 10%. nipigon currentl
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!