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Leona [35]
3 years ago
12

A project costing $218,000 has equal annual cash inflows over its 7-year life. If the discounted payback period is seven years a

nd the discount rate is zero percent, what is the amount of the cash flow in each of the seven years
Business
1 answer:
irakobra [83]3 years ago
3 0

Answer:

The annual cash-flow is $31,142.857

Explanation:

Giving the following information:

A project costing $218,000 has equal annual cash inflows over its 7-year life.

The fact that the discount rate is cero means that the value of money doesn't vary with time. The payback period indicates that the sum of the cash flows equals the initial investment.

Cash flow= 218,000/7= $31,142.857

The annual cash-flow is $31,142.857

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Factors of production

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The factors of production are combined or put together for the productions of goods and services to happen.  The four factors include land, which represents the natural resources in this case.

<u>Land</u> refers to the space used to set up a business, and fertile lands used for agriculture, minerals, oil and gas, forest, and other natural resources.

<u>Labor </u>is the human input in production. It involves workers' knowledge, skills, strength, and time spent on the production process.

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3 years ago
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You have just completed a $ 24 comma 000 feasibility study for a new coffee shop in some retail space you own. You bought the sp
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Answer:

$147,000

Explanation:

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