A person borrows $150 that he must repay in a lump sum no more than 8 years from now. The interest rate is 9.9% annually compo
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Answer:
2.36 years
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows.
To derive cash flows from net income, depreciation expenses should be added to net income.
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2 / 5 = 0.4
Deprecation expense in year 1 = 0.4 x $202,000 = $80,800
Book value in year 2 = $202,000 - $80,800 = $121,200
Deprecation expense in year 2 = 0.4 x $121,200 = $48,480
Book value in year 3 = $121,200 - $48,480 = $72,720
Deprecation expense in year 3 = 0.4 x $72,720 = $29,088
Book value in year 4 = $72,720 - $29,088 = $43,632
Deprecation expense in year 4 = $43,632 x 0.4 = $17,452.80
Book value in year 5 = $43,632 x 0.4 - $17,452.80 = $26,179.20
Deprecation expense in year 5 = $26,179.20 x 0.4 = $10,471.68
Cash flow in year 1 = $18,000 + $80,800 = $98,800
Cash flow in year 2 = $25,000 + $48,480 = $73,480
Cash flow in year 3 = $53,000 + $29,088 = $82,088
Cash flow in year 4 = $58,000 + $17,452.80 = $75,452.80
Cash flow in year 5 = $108,000 + $10,471.68 = $118,471.68
Please check the attached image for how the payback period was calculated
Hi there! The answer is 7%
The price of the book is $ 22.
Santino bought it for $ 23.54.
Therefore, the amount of tax is $ 1.54
Now we can find the sales tax rate by using the following formula:
Filling in gives:
The price of the book is $ 22.
Santino bought it for $ 23.54.
Therefore, the amount of tax is $ 1.54
Now we can find the sales tax rate by using the following formula:
Filling in gives: