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Amanda [17]
3 years ago
14

X-treme Vitamin Company is considering two investments, both of which cost $20,000. The cash flows are as follows: Year Project

A Project B 1 $ 23,000 $ 20,000 2 10,000 9,000 3 10,000 15,000 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B. (Round your answers to 2 decimal places.) a-2. Which of the two projects should be chosen based on the payback method
Business
1 answer:
antiseptic1488 [7]3 years ago
6 0

Answer:

Project A = 0.87 years

Project B =  1 year

2 Project should be chosen because it has a shorter payback period.

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows.

For project A, the payback period is $20,000 / $23,000 = 0.87 years

For project B, the payback period is $20,000 / $20,000 = 1 year

Project should be chosen because it has a shorter payback period.

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Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the compa
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Answer:

$716 and $12,300

Explanation:

Original Cost = $16,000 + $2,100

Original Cost = $18,100

Double decline rate = 100/5*2

Double decline rate = 40%

First Year Depreciation = $18,100*40%

First Year Depreciation = $7,240

Second Year Depreciation = $18,100*60%*40%

Second Year Depreciation = $18,100*0.60*0.40

Second Year Depreciation =  $4,344

Third Year Depreciation = ($18,100 - $7,240 -  $4,344 -$5,800)

Third Year Depreciation =  $716

Accumulated Depreciation = $7,240 +  $4,344 + $716

Accumulated Depreciation = $12,300

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3 years ago
Why don't many developing countries benefit from the spread of free trade?
Annette [7]
My best guess is A because they maintain high tariffs on the agriculture custom many developing countries export.
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The ramp at railways station has a rough surface. but Why
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The ramp on a railway station has a rough surface to increase friction so that we do not slip while walking on it. If the surface is smooth, then the frictional force between the ramp and the feet becomes less and the chances of slipping are greater

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A company is offering perpetual preferred stock (its dividend payments last forever) with a fixed annual dividend of $100. If yo
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833.33

Explanation:

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Therefore the value for each share can be calculated as follows

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8 0
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Which of the following sentences presents the bad news most effectively?
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Answer:

D. To keep our costs low and our prices competitive, Nelson Hardware only offers refunds for unused merchandise returned within 30 days with a receipt.

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It is challenging to present bad news effectively. The managers or leaders have to deal with it in their day-to-day activities.

A. The first option is a direct "No". Therefore it is a piece of direct lousy news. It cannot represent an effective way of presenting bad news.

B. The second option tells the situation from the formal way of showing bad news. However, it does not represent any effectiveness.

C. The third choice shows the negative form of acknowledging faulty news. In this case, bad news becomes worse.

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