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lapo4ka [179]
3 years ago
5

Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inf

lows of $1,680,000. Proposal A is expected to provide an annual net cash inflow of $280,000, while the annual net cash inflows for Proposal B are as follows:
Year 1 $350,000
Year 2 $315,000
Year 3 $280,000
Year 4 $280,000
Year 5 $245,000
Year 6 $210,000
Determine the cash payback period for each proposal. Round your answers to two decimal places.
Cash Payback Period
Proposal A
years
Proposal B
years
Business
1 answer:
miss Akunina [59]3 years ago
5 0

Answer:

Proposal A

3.75 years

Proposal B

3.375 years

Explanation:

<u>Proposal A</u>

Payback = 3.75 years

Year     Cash Inflow      Initial Investment Balance   Year Count

0                   0                         1,050,000                        

1                   $280,000           770,000                            1

2                  $280,000           490,000                           2

3                  $280,000           210,000                            3

4                  $280,000           0                                    *3.75

* 1050,0000 / 280,000 = 3.75 years

<u>Proposal B</u>

Payback = 3.375 years

Year     Cash Inflow      Initial Investment Balance   Year Count

0                   0                         1,050,000                        

1                   $350,000           700,000                            1

2                  $3150,000          385,000                           2

3                  $280,000           105,000                            3

4                  $280,000           0                                    *3.375

* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years

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Answer: This interview is a Sequential interview because Sequential interviews are a series of interviews in which the candidate is evaluated by several supervisors. Sequential interviews are common in large companies and usually a Human Resources specialist, the department head and a senior supervisor are involved.

4 0
3 years ago
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $82, and the book value per share is
Dmitry [639]

Answer:

a. The company's capital structure weights on a book value basis is that the Equity/Value is 0.1584  and the Debt/Value is 0.8416

b. tTe company's capital structure weights on a market value basis is that the Equity/Value is 0.7257  and the Debt/Value is 0.2743

Explanation:

a. According to the given data we have the following:

Book Value of first bond = $135  million

Book Value of second bond = $120  million

Book Value of shares = 8*6 = 48

Therefore, in order to calculate the company's capital structure weights on a book value basis we would have to make the following calculations:

Weight of equity = 48/($135+$120+48) = 0.1584

Weight of debt = ($135+$120)/($135+$120+48) = 0.8416

b. In order to calculate the companyâs capital structure weights on a market value basis, we would have to calculate first the Market Value of first bond and the Book Value of second bond as follows

Market Value of first bond = $135*93% = $125.55  millions

Book Value of second bond = $120* 102% = $122.4  millions

Market Value of shares = 8*82 = 656

Therefore, Weight of equity = 656/(656 +125.55 +122.4) = 0.7257

Weight of debt = (125.55+122.4)/(656 +125.55 +122.4)) = 0.2743

6 0
3 years ago
Someone please help me.
Elanso [62]
In my understanding, this assignment wants you to evaluate the decision made by the management officer, in her attempt to improve the business position.

First of all, net profit figure shows the profitability of the business. Net profit figure means the total profit earned minus all the costs incurred in running the business. Higher net profit figure in year 1 might indicate a favourable position, as it could be that higher profit is generated from using whatever method/machine they use in year 1, or running this machine incurred less cost. In year 2, they didn't necessarily earn lower profit, but running the new machine might be more costly.

Next, rate of productivity growth refers to the growth in quantity of output produced. If more output can be produced, this means higher efficiency. This means that the efficiency of production in year 2 is more than in year 1.

Thirdly, the number of customer's complaints is important in evaluating the business' goodwill, in this case, its position in the society. Without good relationship with the public, a company may lose its customer. It is always important to keep clients satisfied since they're the source of income to the business. This means that the management decision in year 2 is more favourable than in year 1.

Last but not least, rate of absenteeism can be evaluated in terms of productivity . Higher absenteeism means lower productivity, lower output but higher cost to the business since they're paying salaries to workers who don't produce output to sell. Less output to sell means less income can be earned. In year 1, the business productivity is higher than in year 2.

In year 2, the business has a boost in their efficiency & reputation. Although less profit earned, it is likely that this will grow in the future. Staff attendance can be improved by encouragement such as giving incentives for example, provision of more holidays.

I hope this is helpful!
6 0
3 years ago
John is an employee at a car manufacturer. today he has come into work to find that production has stopped because the governmen
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John most likely lives in a<u> "planned economy".</u>


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5 0
3 years ago
A single-channel queuing system has an average service time of 10 minutes and an average time between customer arrivals of 15 mi
amm1812

Answer: (a ) 4 per hour (b ) 4.5 minutes (c ) 3 minutes

Explanation:

Average time between customer arrival = 15 minutes

Average service time = 10 minutes

(a) To calculate the customer arrival rate

Arrival rate = 1 / time between Arrival

= 1 / 15

= 0.066 × 60

= 4 per hour

(b) To calculate the average number of customers in queue

( Arrival time )^2 / service time ( service time - Arrival time)

= (15)^2 / 10 ( 10 - 15)

= 225 / 10 (-5)

= 225 / 50

= 4.5 minutes

(c) To calculate the average time customers spend in the system

Arrival time / service time - Arrival time

= 15 / 10 - 15

= 15/ -5

= 3 minutes

7 0
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