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
Ulleksa [173]
3 years ago
8

Michigan Mattress Company is considering the purchase of land and the construction of a new plant. The land, which would be boug

ht immediately (at t = 0), has a cost of $100,000 and the building, which would be erected at the end of the first year (t = 1), would cost $500,000. It is estimated that the firm's after tax cash flow will be increased by $100,000 starting at the end of the second year, and that this incremental flow would increase at a 10 percent rate annually over the next 10 years. What is the approximate payback period? 2 years 4 years 6 years 8 years 10 years
Business
1 answer:
swat323 years ago
8 0

Answer:

6 years

Explanation:

The Payback period calculates how much it takes the amount invested in a project to be recovered from the cumulative cash flow.

Total amount invested =  $500,000 +  $100,000 =  $-600,000

Cash inflow in year 2 =  $100,000

Amount recovered in year 2 = $-600,000 + 100,000 = $-500,000

Cash inflow in year 3 =  $100,000 × 1.1 = 110,000

Amount recovered in year 3=$-500,000 + 110,000 = $-390,000

Cash inflow in year 4= $121,000

Amount recovered in year 4 = $-390,000 + $121,000 = $-269,000

Cash inflow in year 5= $133,100

Amount recovered in year 5 = $-269,000 + $133,100 = $-135,900

Cash inflow in year 6 = $146,410

Amount recovered in year 6 = $146,410 $-135,900 = $10,510

The amount is recovered In 5.93 years

I hope my answer helps you

You might be interested in
In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplif
Verdich [7]

Answer:

In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplified based on the results of a much more complicated model.) Demand is given by QD = 105 − 1.5P where QD is in millions of tires per year. Supply is QS = 1.5873P − 15.87.

Explanation:

4 0
3 years ago
One reason to buy a home instead of rent a home is
EleoNora [17]
A home you can live in it longer than when you rent a home.
5 0
3 years ago
Read 2 more answers
What would it mean to you and/or your family to be a part of Career Source Tampa Bay's 2021 Summer Job Connection program? What
ycow [4]

Answer:

It is job connection program organized by Career Source Tampa Bay for the youths of Hillsborough. It provides a platform for the unemployed youths of Hillsborough to connect themselves to the potential employers by learning new skills and experiences.

Explanation:

Career Source Tampa Bay is organizing a summer youth job connection program for the year 2021 for the youths of the Hillsborough County. It is summer job connection program for the youth who are aged between 16 to 24. It is organized by Career Source Tampa Bay.

It provides an opportunity for the youths and prepare them with skills and know how about the targeted jobs. It introduces them to real work filed and exposes them to new ideas and experiences and the potential career paths for the future jobs.

7 0
3 years ago
Control involves _____________, by definition.
anygoal [31]
D I think is correct answer.
6 0
3 years ago
What employee census data should sally gather to prepare for a benefits bid?
PilotLPTM [1.2K]

The employee census data that should be gathered by Sally to prepare for a benefits bid are;

  • Name
  • Age or date of birth
  • Number of dependents.

<h3>What are employee census data?</h3>

Employee census data can be regarded as the information needed from the employee to file a benefits bid.

Therefore, Name and Age are required for employee census data that should be gathered by Sally to prepare for a benefits bid.

Learn more about employee census data at:

brainly.com/question/25741658

3 0
2 years ago
Other questions:
  • In the 1970s, Atari singlehandedly created a market for home video games, offering a console and cartridges that contained games
    11·1 answer
  • Of the automobiles produced at a particular plant, 40% had a certain defect. suppose a company purchases five of these cars. wha
    13·1 answer
  • ____ includes the planning, executing, and controlling of all activities involved in raw material sourcing and procurement, conv
    15·1 answer
  • The Securities Investor Protection Corporation is a government agency charged with administering the liquidation of failed secur
    10·1 answer
  • Business schools generally train students to follow ________ decision-making models
    11·1 answer
  • When the price of penguin patties decreases by 5%, the quantity of flopsicles sold increases by 4% and the quantity of mookies s
    11·1 answer
  • WACC and Optimal Capital Structure F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently ha
    12·1 answer
  • Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $82,000 of services
    10·1 answer
  • A friend tells you that they cannot pay for for the standardized tests that need to be taken to apply for college and military s
    7·1 answer
  • To ensure the completeness of a business message, a writer should.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!