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
tigry1 [53]
3 years ago
13

Nubela Manufacturing is considering two alternative investment proposals with the following​ data: Proposal X Proposal Y Investm

ent ​$10,700,000 ​$580,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years ​$2,140,000 ​$103,000 Residual value ​$50,000 ​$26,000 Depreciation method Straightminusline Straightminusline Required rate of return ​12% ​13% Calculate the payback period for Proposal X.
Business
1 answer:
dedylja [7]3 years ago
8 0

Answer:

Payback period =  4 years  11.72 months

Explanation:

<em>The payback period is the estimated length of time in years it takes  </em>

<em>the net cash inflow from a project to equate and recoup the the initial cost  </em>

<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as: </em>

<em>Payback period =The initial invest /Net cash inflow per year </em>

Payback period for project X

Cumulative net cash inflow for 4 years

=$2,140,000× 4 = $8,560,000

Cash in flow in year 5 = annual cash inflow + scrap value

                     2,140,000 +  50,000= $2,190,000

Payback period = 4 years  + (10,700,000-8,560,000 )/2,190,000 × 12 months

                          = 4 years  11.72 months

Payback period for project X= 4 years  11.72 months

You might be interested in
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible A
Lunna [17]

Answer:

$870

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Allowance for uncollectible accounts at 5%

= 5% * $302,000

= $1,510

Since the Allowance for Uncollectible Accounts was $640 (credit) before any adjustments, the bad debt expense for the year

= $1,510 - $640

= $870

8 0
3 years ago
Under the percentage of completion method, if the actual costs are ____ the estimated costs, the taxpayer must pay interest on t
Sphinxa [80]

Answer:

The correct answer is Less than the estimated costs.

Explanation:

The percentage method completed is an accounting practice used to recognize income in long-term contracts.

When long-term projects (greater than one year) are undertaken, the costs and revenues associated with it are incurred throughout its life.

This accounting method, as its name suggests, allows the company to account for part of the associated income and expenses incurred as the project phases are completed. Thus, the percentage complete method is understood as a method of recognition of recognition of income and expenses that is applied continuously without having to defer income and expenses at the end of the project.

8 0
3 years ago
Brief Exercise 12-8 have a carrying Ayayai Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill
blsea [12.9K]

Answer:

Explanation:

Since the fair value of the division is less than the carrying value of the division so the loss on impairment is recorded

The journal entry to record the impairment of the goodwill is shown below:

Loss on impairment A/c Dr $30,000

                       To Goodwill A/c $30,000

(Being loss on impairment is recorded)

The computation is shown below:

= Carrying value - fair value  

= $300,000 - $270,000

= $30,000

4 0
3 years ago
Risk is a necessary ‘evil’ evil’, support this assessment and give advice risk
butalik [34]

For a high-risk investment, managers require a high reward.

5 0
3 years ago
British explicitly inhibited the development of what industry
liq [111]
British explicitly inhibited the development the coal industry.

England sparked the industrial revolution which changed the way things are made such as machinery(Engines) which was powered by coal.
5 0
3 years ago
Other questions:
  • How do you create a business
    10·2 answers
  • Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate
    6·2 answers
  • What is the future value of $12,000 after 5 years if the appropriate interest rate is 6%, compounded semiannually?
    14·1 answer
  • When demand is unit​ elastic, a change in price causes total revenue to stay the same because A. total revenue never changes wit
    14·1 answer
  • Although it is a small company, Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisiana.
    12·1 answer
  • If jjones withdraws 50000 from her personal account and deposits cash into a business account how to know 2hich accts to put in
    12·1 answer
  • Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 14 years to maturity, make semiann
    7·1 answer
  • Creditors want to see that a company that owes them money has ______. Multiple choice question. liabilities that are greater tha
    12·1 answer
  • Which of the following statements regarding the income statement columns on the worksheet is false?
    5·1 answer
  • The double-a of american airlines, the peacock of nbc, and the apple with a missing bite of apple are examples of a _______. bra
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!