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salantis [7]
3 years ago
9

Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The com

pany uses straight-line depreciation. Project A is expected to yield annual net income of $20,000 per year for the next five years. Compute Project A's payback period.
Business
1 answer:
solong [7]3 years ago
5 0

Answer:

4 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow.

Initial Investment = $280,000

Net Income = $20,000

To calculate the net cash flows add bask the depreciation expense in Net income each year.

Depreciation = ($280,000 - $30,000) / 5 = $50,000

Net Cash Flow = $20,000 + $50,000 = $70,000

Payback period = Initial Investment / yearly cash flow = $280,000 / $70,000 = 4 years

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Answer:

$500

Explanation:

              2012 Income Statement

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<u>Expenses</u>

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Interest on bank loans       <u>$600</u>    <u>$1,500</u>

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So, the amount of $500 will be shown as Net Income on the 2012 Income Statement.

6 0
3 years ago
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bogdanovich [222]
<h2>A</h2>

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8 0
3 years ago
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A woman arrives at the clinic for a pregnancy test. The first day of her last menstrual period (LMP) was February 14, 2013. Her
Aneli [31]

Answer:

a) November 21, 2013

Explanation:

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First, we need to identify the first day of the last menstrual period (LMP). Then we would count it back to three calendar months from that date. Finally, we would add 1 year and 7 days to that date.

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An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis. The company has set
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Answer:

b

Explanation:

b

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One benefit of attending a technical school program is
photoshop1234 [79]

Answer:

C. lower costs to attend

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