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
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

You might be interested in
Which of the following jobs is considered a trade?
Rina8888 [55]
The correct answer is plumbing
5 0
2 years ago
Read 2 more answers
If the seller has reason to believe that nonconforming goods will be acceptable to the buyer, this could constitute as an except
Blababa [14]

Answer:

Perfect Tender Rule

A. True

Explanation:

The Uniform Commercial Code's Article 2 recognizes the legal right of a buyer of goods to demand precise conformity of the goods to the product description in quality, quantity, and delivery manner.  Therefore, the buyer may reject goods offered by the seller which do not conform to the earlier product descriptions.  This rule is called the Perfect Tender Rule.  An exception to this rule will be if the seller has a reason to believe that non-conforming goods will be acceptable to the buyer.

4 0
3 years ago
When the price at which the quantity of a product willing to be purchased by customers and the quantity of product willing to be
Olegator [25]
When the price at which the quantity of a product willing to be purchased by customers and the quantity of product willing to be made by a producer are equal, this is known as the equilibrium price. Equilibrium price is the price set by a market in which the amount of products that are supplied is equal to the amount of products that are demanded.
8 0
3 years ago
Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ow
vlada-n [284]

Answer:

The answer to the following question is attached within a word file.

Download docx
7 0
3 years ago
Overapplied manufacturing overhead would result if:
Ksivusya [100]
<span> Manufacturing overhead describes the difference between manufacturing overhead cost applied to work in process and manufacturing overhead cost actually incurred during a period.</span>
Over-applied manufacturing overhead would result if the manufacturing overhead cost applied to work in process is more than the manufacturing overhead cost actually incurred during a period. So, in over-applied overhead the applied overhead is bigger than the actual overhead. 
4 0
3 years ago
Other questions:
  • Next to the following list of eight characteristics of business organizations, select a brief description of how each characteri
    11·1 answer
  • What was one part of Mawi’s story that stood out to you from his videos? Why did it stand out?
    5·2 answers
  • Which of the following is a difference between customized services and standardized services?
    6·1 answer
  • An aircraft factory manufactures airplane engines. The unit cost (the cost in dollars to make each airplane engine) depends on t
    7·1 answer
  • What's the best definition of financial literacy? A. The ability to find, evaluate, utilize, share, and create financial content
    15·1 answer
  • David has purchased an investment that he expects to produce an annual cash flow of​ $3,000 for five years. He requires an​ 8% r
    6·1 answer
  • The major federal consumer protection agencies are authorized by law to: Intervene directly into the very center of free market
    6·1 answer
  • The accrual basis of accounting:____
    9·1 answer
  • a manfucturing firm is considering two locations for a plant to producr a new product. Location A has a foxed cost of 80,000 and
    14·1 answer
  • The financial records of Sunland Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain st
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!