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ira [324]
4 years ago
6

Craig's Car Wash Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the projec

t's discounted payback?r = 10.00%Year 0 1 2 3Cash flows −$900 $500 $500 $500a. 1.88 yearsb. 2.09 yearsc. 2.29 yearsd. 2.52 yearse. 2.78 years

Business
1 answer:
otez555 [7]4 years ago
6 0

Answer: B - 2.09 years

Explanation:

Discounted payback period calculates how long it takes for the amount invested in a project to be recovered from the cash flows generated from the project.

The calculation used in getting the answer is found in the attachment.

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Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
malfutka [58]
If you need to indicate the missing ammount of each letter in the grahp then it will be like follows:
 For the first case:
A = $9,600 + $5,000 + $8,000 = $22,600$22,600 + $1,000 – B = $17,000
B = $22,600 + $1,000 – $17,000 = $6,600$17,000 + C = $20,000
C = $20,000 – $17,000 = $3,000
D = $20,000 – $3,400 = $16,600
<span>E = ($24,500 – $2,500) – $16,600 = $5,400
</span><span>F = $5,400 – $2,500 = $2,900
</span>And now for the second case:
G + $8,000 + $4,000 = $16,000
G = $16,000 – $8,000 – $4,000 = $4,000$16,000 + H – $3,000 = $22,000
H = $22,000 + $3,000 – $16,000 = $9,000(I – $1,400) – K = $7,000(I – $1,400) – $22,800 = $7,000
<span>I = $1,400 + $22,800 + $7,000 = $31,200
</span>J = $22,000 + $3,300 = $25,300
K = $25,300 – $2,500 = $22,800$7,000 – L = $5,000
<span>L = $2,000</span>
8 0
3 years ago
Vince owes colton $140,000 under a previous contract. vince does not have the money, but does own property worth approximately $
vekshin1
The answer is accord. It is a proposal to substitute a dissimilar obligation for one that was beforehand unsettled, plus the recognition of that offer.  Either of the parties convoluted can suggest an accord.  If the recently substituted obligation is essentially performed, the act is named a satisfaction. 
3 0
4 years ago
Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 y
Rzqust [24]

Answer:

9.73%

Explanation:

For computing the after tax cost of debt first we have to determine the cost of debt by applying the RATE formula i.e. to be shown in the attachment below:

Given that,  

Present value = $604.42

Future value or Face value = $1,000  

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 20 years × 2 = 40 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 6.95% × 2 = 13.9%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 13.9% × ( 1 - 0.30)

= 9.73%

8 0
3 years ago
Match each of the numbered descriptions with the principle or assumption it best reflects. Enter the letter for the appropriate
KatRina [158]

Answer:

1 with G = Revenue Recognition Principle

2 with A = Cost principle

3 with C = Specific Accounting Principle

4 with H = Going concern assumption

5 with D = Full Disclosure Principle

6 with B = Matching Principle

7 with E = General Accounting Principle

8 with F = Business Entity Assumption

Explanation:

Revenue shall be recognised as at the time that their is 100% certain that the risk and reward associated is transferred to the customer. = Revenue Recognition Principle.

Cost Principle assumes to record transactions at its cost and not the market value.

Specific Accounting Principle is made with specific orders for specific industry.

Going concern assumption assumes that the business with continue to an infinite period of time and it will not end.

Full Disclosure principle requires to disclose all the material facts about business whether the effect is  currently disclosed in financial statements or not.

Matching principle requires to record expense for each revenue earned.

General Accounting Assumption is old and applicable on all the businesses and industry.

Business Entity Assumptions assumes for business calculations that the owners are different from their business, and both are two separate identities.

3 0
3 years ago
Green Scene Co., a struggling start-up firm that needs a huge cash injection, has an environmentally friendly pesticide that is
shepuryov [24]

Answer:

It is considered as a problem child

Explanation:

Green Scene co. would be considered as a problem child, seen from the context of BCG matrix. Green Scene Co. being a struggling start-up company is in the need of large funds (Cash). The organic farmers use the pesticide of Green Scene Co., that is not harmful to environment. Not only the pesticide has great potential but is made from all the natural ingrdients.

4 0
4 years ago
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