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slamgirl [31]
3 years ago
11

Worthington Inc. is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3Cash

flows −$500 $150 $200 $300a. 2.03 yearsb. 2.25 yearsc. 2.50 yearsd. 2.75 yearse. 3.03 years
Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer:

c. 2.50 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $500

In year 1 = $150

In year 2 = $200

In year 3 = $300

If we sum the first 2 year cash inflows than it would be $350

Now we deduct the $350 from the $500 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $300

So, the payback period equal to

= 2 years + ($150 ÷ $300)

= 2.50 years

In 2.50 yeas, the invested amount is recovered.

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_ is the actual amount each common stockholder would expect to receive if a​ firm's assets are sold for their market​ value, cre
Alona [7]

Answer: Liquidation value

Explanation:  

The liquidation value is one of the type of physical assets of an organization and the business value, real estate firms, directories and the equipment are refers as the liquidation value that helps in evaluating the overall worth of the firm.

This organizational value is lower as compared to the market value and it has less time for selling the products in the open market.  

According to the given question, the liquidation value is refers as the actual amount of the stockholder expected value value in the market. Therefore, Liquidation value is the correct answer.

5 0
3 years ago
Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0%
Feliz [49]

Answer:

$587,500

Explanation:

You are required to calculate the value of the levered firm;

vL = vU + Dt, whereby;

vL = Value of levered firm

vU = value of unlevered firm

Dt = debt * tax ; which is the tax shield

Find value of unlevered firm;

vU = [EBIT(1-tax) ]/ rE

    = [100,000(1-0.30)] / 0.16

    = 437,500

Value of levered firm;

vL = 437,500 + (500,000*0.30)

   = 437,500 +150,000

   = $587,500

6 0
3 years ago
What are some of the ways in which the government is involved in the economy? what are the advantages and disadvantages of gover
ArbitrLikvidat [17]
The government can control tariffs and can limit how much can be imported into the usa.
The government can provide subsidies to certain producers, typically farmers.
The government can put a ceiling and a floor on prices as they wish. They can control the lowest and highest price a commodity can sell for.
The government can own public works such as a water company if they feel they can provide the service for a lower cost than the local competitors.
The government can decide which companies are monopolies and which companies are violating federal policies regarding trade. The government has the power to break up monopolies.
Each of these has advantages and disadvantages. For example, for farmers, when prices on their crops are too low, the government "gives" them money for their crops so they can stay in business.
A monopoly business controls the price and supply. If the monopoly is broken up, then competitors can enter the field- this can help drive down prices.
If the government can provide utility services for cheaper, that is good.

5 0
3 years ago
Gentle Ben's Bar and Restaurant uses 6,700 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottl
Marat540 [252]

Answer:

a. The answer is:762 bottlé.

b. The answer is: 487 bottles.

Explanation:

a. The economic order quantity is calculated as: \sqrt{(2xDxS/H)} = \sqrt{2 x 6968 x 25)/0.6 = 762 units because: D = annual demand = Weekly demand x week opening per year = 134 x 52 = 6968; S = Cost per order = 25; H = Holding cost per unit = 15% x purchase price = 15% x 4 = 0.6

b. Inventory level to place order:

With the inventory system providing a 95 percent service probability, z level is 1.64 (using the NORM.S.INV function in excel).

So Inventory level to place order = 134 * 3 + 1.64 * 30 * 3^0.5= 487 bottles.

7 0
3 years ago
81. After the secondary guaranteed rate expires, some contracts contain a bailout
igor_vitrenko [27]
75% is the best answer
3 0
3 years ago
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