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
Arlecino [84]
3 years ago
14

The management of Charlton Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate

of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year Income from Operations Net Cash Flow 1 $20,000 $95,000 2 20,000 95,000 3 20,000 95,000 4 20,000 95,000 5 20,000 95,000 The cash payback period for this investment is a. 19 years b. 3.3 years c. 5 years d. 4 years
Business
1 answer:
VikaD [51]3 years ago
7 0

Answer:

d. 4 years

Explanation:

Cash payback period is the time on which the company receive from the investment the same amount of money investment

cash fows = investment

regardless of discount or interest rates or changes in the value of the equipment. It is just answerng:

I put 100,000 dollars in the project, when I get 100,000 dollars back ?

The usual formula will be:

\frac{investment}{cash \: flow} = payback

380,000/ 95,000 = 4 years

You might be interested in
Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. If
JulijaS [17]

Answer:

C) $500

Explanation:

First we must determine the money multiplier = 1 / reserve ratio:

  • money multiplier = 1 / 20% = 5

The bank's checkable deposits originally increase by $100, and since it will be able to lend all the money it can, $80, its checkable deposits will also increase by $80 x 5 (money multiplier) = $400.

So the total increase in the bank's checkable deposits = $100 (original deposit) + $400 (money created through loans) = $500

4 0
3 years ago
Consider an identical basket of goods in both the U.S. and Taiwan. For a given nominal exchange rate, in which case is it certai
Temka [501]

Answer: The price of the basket of goods falls in the U.S. and rises in Taiwan.

Explanation: Exchange rate is the price of a given currency when bought with another another,it is also known as the value of a currency when compared with others such as the United States Dollar. Various factors have been understood to be the cause of the rise and fall of Currency. This will include the value of a country's export and its balance of trade etc

When the price of the basket of goods falls in the United States and rises in Taiwan it will certainly cause the U.S. real exchange rate with TAIWAN to fall.

3 0
3 years ago
Read 2 more answers
The accounting records for the Fox Hollow Company show that its cost of goods sold for the year was $300,000. In addition, it ha
timurjin [86]

Answer:

Cash paid will be equal to $311000

Explanation:

We have given cost of goods sold = $300000

Increase in inventory = $5000

Decrease in account payable = $6000

We have to find the amount of cash paid to the suppliers.

Amount of cash paid to the suppliers will be equal to

Cash paid = amount of goods sold + increase in inventory + decrease in account payable.

= $300000+$5000+$6000 = $311000

So cash paid will be equal to $311000

7 0
3 years ago
The standard deviation of return on investment A is 10%, while the standard deviation of return on investment B is 5%. If the co
ahrayia [7]

Answer:

<em>The answer is 60.</em>

Explanation:

<em>The First step in solving the example given, is to recall the following steps to be taken </em>

<em>The standard deviation of return on investment A =10%</em>

<em>The standard deviation of return on investment B =5%</em>

<em>The co-variance of returns both on A and B =.0030</em>

<em>The next step is as follows</em>

<em>co-variance = correlation </em>

<em>.0030 (.05 x .10) =  60</em>

<em>Therefore the correlation coefficient between the returns of A and B is 60</em>

8 0
4 years ago
How would you define brand attitude?
Tema [17]
Brand attitude is the opinion of consumers towards a product determine through market research.
6 0
3 years ago
Other questions:
  • Which of the following is NOT an example of a business risk?
    5·1 answer
  • The rate on T-bills is currently 5%. P. Tree Company stock has a beta of 1.69 and a required rate of return of 15.4%. According
    10·1 answer
  • Which of the following is not a quality of an effective team member?
    13·1 answer
  • Demur Inc., a manufacturing company, has provided the following data for the month of April. The balance in the Work-in-Process
    6·2 answers
  • How does technology help business become more efficient
    5·2 answers
  • Assume the US government security with 1 year maturity (nominal interest rate) is 2% and Japanese government security with 1 yea
    13·1 answer
  • Kimba Inc. is a manufacturer of smart watches that track the wearer's heart rate and sleep patterns. Which of the following is m
    6·1 answer
  • If the market index subsequently rises by 8% and Ford’s stock price rises by 7%, what is the abnormal change in Ford’s stock pri
    7·1 answer
  • What is the mindtap learning path most similar to?.
    5·1 answer
  • Stockholders, employees and environmentalists are examples of stakeholders whose interests
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!