The statement above is FALSE. The cash pay back techniques is an important accounting too which managers used to evaluate the viability of capital projects before they decide to go for such projects. The method is used to evaluate how long a capital project will take to cover its original investment.
Answer:
a.-$562.5
Explanation:
Deprecation will reduce net income by ($750)
The tax impact will be 750*25%= $187.5
Net impact on net income after tax ( $562.5)
The answer is a.-$562.5
Answer:
$11,666
Explanation:
The computation of the mount of interest should be capitalized to the project on June 30 is shown below:
= $500,000 × 0.05 × 3 months ÷ 12 months + $300,000 × 0.05 × 2 months ÷ 12 months + $700,000 × 0.05 × 1 months ÷ 12 months
= $6,250 + $2,500 + $2,916
= $11,666
The $300,000 is come from
= $800,000 - $500,000
And, the $700,000 is come from
= $1,500,000 -$800,000
= $700,000
According to the months, the number of months are chosen.
Answer:
Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people attended the class. From the midpoint method, the price elasticity of demand for Zumba is:
0.286
Explanation:
20 at $4.50= $90
10 at $5.50= $55
price elasticity= change in quantity demand/ change in price
20-10= 10 change in quantity demand
$90-$55= $35
10/35=0.286
Answer:
42.45 years
Explanation:
Discounting is the means by which the today's value of an amount in the future is computed. Compounding is the process by which the future value of a present amount is determined. In other words, the present value of $1 tomorrow is determined by discounting while the future value of $1 tomorrow is determined by compounding.
Where
Fv = Pv(1 + r)^n
Fv is the future value
Pv is the present value
r is rate
n is time
215000 = 36000(1 + 0.043)^n
215/36 = 1.043^n
Taking the log of both sides
log (215/36) = log 1.043^n
n = log (215/36) / log 1.043
n = 42.45 years
It will take 42.45 years to have enough to buy the car