Answer:
3.53 years
Explanation:
The computation of the payback period is shown below:
In year 0 = $8,300
In year 1 = $2,100
In year 2 = $3,000
In year 3 = $2,300
In year 4 = $1,700
If we sum the first 3 year cash inflows than it would be $7,400
Now we subtract the $7,400 from the $8,300 , so the amount is $900 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 $1,700
So, the payback period equal to
= 3 years + $900 ÷ $1,700
= 3.53 years
Answer:
<h2>In this case,visit to the Butchart Garden is an excludable and non-rivalrous good and is an example of a Club Good.</h2>
Explanation:
First,since the Burchart Gardens charges an admission fee of $30 for each visitor,anyone who has not paid the fee cannot or will not be able to have access inside the garden.Therefore,it is currently not a free service for all the visitors.In this sense,a visit to the Butchart Garden is excludable.It can be assumed that any visitor who wishes to come inside the garden and have a visit will have to mandatorily pay the admission fee.
Secondly,as Butchart Garden is a public area and anyone who pays the admission fee can officially gain access to the garden,enjoyment of the natural and aesthetic beauty of the garden by any one visitor does not reduce the simultaneous enjoyment of any other visitor who has paid the admission fee and hence,gained access to the garden.In economic language,if we consider the garden visit as a particular commodity,then the consumption of the commodity by any one visitor or consumer does not reduce the simultaneous consumption of any other visitor/s or consumer/s,provided that they have all paid the admission fee to gain access to the commodity or garden in this case.Therefore,visits to the Butchart Garden can be considered as non-rivalrous.
Now,since the visit to the Butchart garden is both excludable and non-rivalrous in nature,it can be considered as an example of a Club Good.
Answer:
Department Y $9000
Department Z $5000
Explanation:
Delivery expense can be calculated using the allocation and apportionment method for Y and Z.
<u>Step 1. Allocation</u>
The costs that are directly attributable to the departments would be allocated to its relevant department. Here, $1500 are the direct expenses for the deliveries for the department Y, so at the first step,
Department Y Cost = $1500
For the department Z, their are no direct expenses for the deliveries,so at the first step,
Department Z Cost = $0
<u>Step 1. Apportionment</u>
The indirect cost of $12500 ($14000 - $1500) would be apportioned among department Y and Z.
So
Department Y = $1500 + $12500 x 60% = $9000
Department Z = $12500 x 40% = $5000
Answer :a obligation.
The word obligation means “to be bound to act in a certain way either morally or legally.”
Hence when one is in need of money to start a business, family members may lend the money because they are bound to help you in times of need.
Loans from family members are usually interest free.
However, if the loan is not repaid, relationships quickly turn sour.
Hence loans from family member must be treated with respect and care, in order to maintain relationships.