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koban [17]
3 years ago
14

A company is considering purchasing a machine for $21,000. The machine will generate income from operations of $2,000; annual ne

t cash flows from the machine will be $3,500. The payback period for the new machine is 6 years.a. Trueb. False
Business
1 answer:
Ksenya-84 [330]3 years ago
5 0

Answer:

True

Explanation:

Data provided in the question:

Purchasing cost of the machine = $21,000

Income generated = $2,000

Annual net cash flows from the machine = $3,500

Now,

The Payback period = [ Purchasing cost ] ÷ [ Annual net cash flows ]

or

Payback period = $21,000 ÷  $3,500

or

Payback period = 6 years

Since,

the calculated payback period and the mentioned payback period in the question are equal

Hence,

the given statement is true

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The ________ takes into account such costs as deteriorated customer relations and lost sales
Sergio039 [100]

The <u>Full cost view of maintenance</u> takes into account such costs as deteriorated customer relations and lost sales.

a cost that an employer has when they employ someone, in addition to the cost of paying the person's salary or wages. cost is the amount or equivalent paid or charged for something .

Examples of costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

Direct, indirect, fixed, and variable are the 4 main kinds of cost.

learn more about cost here

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7 0
1 year ago
Karin Company's loan is due on July 1, 2018. What conditions must Karin meet (at a minimum) so that the note can be classified a
Sindrei [870]

Answer: D. A & C

Explanation:

A long term liability is one that is due to be paid in a period longer than a year. The loan is due in less than a year so the only way to classify it as a long term liability is to make it a loan that will extend past a year. This can be done through refinancing which is to replace the current loan with another loan.  

Karin's company therefore would need to demonstrate that the obligation can be refinanced on a long-term basis by them and they must also have the intention to do so as well.

8 0
3 years ago
HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
lawyer [7]
No, its okay not to use all that extra stuff, so F
6 0
3 years ago
Read 2 more answers
Which of the following statements is true of the behavior of total variable​ costs, within the relevant​ range? A. They will inc
grandymaker [24]

Answer:

They will decrease as production decreases

Explanation:

Total Variable cost is sum of all the cost incurred in production of total units of goods produced. It is directly proportional to the number of units of goods produced. It helps to analyze cost structure of goods and then decide on pricing strategy of the goods. Some of the examples of variable cost can be packaging cost, raw material’s cost.

Mathematically it can be defined as  

Total variable cost = Total units of goods produced *  variable cost for one unit of good produced  

Hence from the given option  They will decrease as production decreases as the number of units of goods produced will decrease and hence lesser raw material and packaging will be required to produce the goods.

7 0
3 years ago
The research and development division of Anchor Inc., a manufacturing firm, has a sizeable number of engineers for its employees
Phoenix [80]

Answer:

The correct answer is letter "C": Orientation.

Explanation:

The primary organization-specific factors are <em>orientation, size of the organization, </em>and<em> degree of centralization</em>. Orientation <em>refers to the function of a company that controls the decisions in regards to purchases</em>. The size of the organization implies decision making will be more centralized in larger firms while more decentralized in smaller firms. Finally, the degree of centralization states that even in highly autonomous corporations, some purchases might be subject to the approval of a manager who confirms the need for the assets being acquired.

<em>Because in Anchor Inc. the purchase decisions are made by engineers the orientation organization-specific factor is more relevant in that company</em>.

6 0
2 years ago
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