All categories

3 years ago

Exercise 13-8 Payback Period and Simple Rate of Return [LO13-1, LO13-6]

Business

1 answer:

andrew-mc [135]3 years ago

5 0

Answer:

4 years

Yes

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project to be recovered from the cumulative cash flow.

Cash inflow for the period = Net income + Net cash deductions (depreciation expenses)

$60,800 + $19,200 = $80,000

Payback period = amount invested / cash inflow

$320,000 / $80,000 = 4 years

If the payback period is five years or less, the project would be accepted because the amount invested would be recovered in 4 years. Therefore, the company would purchase the new games.

I hope my answer helps you

You might be interested in

Use the following data to determine the cost of goods manufactured: Beginning finished goods inventory $ 12,300 Direct labor 32,

Papessa [141]

The Cost of Goods Manufactured is $104,100.By adding the direct material cost with the direct labor cost ,factory overhead,beginning work in progress and deducting the value obtained from the ending work in process value we get the The Cost of Goods Manufactured

Explanation:

The information Given in the question is

Beginning finished goods inventory

$ 12,300

Direct labor

32,100

Beginning work in process inventory

8,700

General and administrative expenses

15,000

Direct materials used

42,000

Ending work in process inventory

10,500

Indirect labor

7,800

Ending finished goods inventory

11,000

Indirect materials

15,000

Depreciation - factory equipment

9,000

So the formula for the

Cost of Goods Manufactured = Direct Materials + Direct Labor + Factory Overhead + Beginning Work in Process - Ending Work in Process

Cost of Goods Manufactured = $42,000 + $32,100 (Indirect Labor + Indirect Materials + Depreciation Factory Equipment) + $8,700 − $10,500

Cost of Goods Manufactured = $42,000 + $32,100 + $7,800 + $15,000 + $9,000 + $8,700 − $10,500 = $104,100.

So,the Cost of Goods Manufactured = $104,100.

8 0

3 years ago

Read 2 more answers

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal

Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0

3 years ago

Leola just finished high school. She would like to earn a bachelor’s degree so she can get a job in Manufacturing. For which car

ehidna [41]

Leola just finished high school. She would like to earn a bachelor’s degree so she can get a job in Manufacturing. For which careers would Leola most likely need a bachelor’s degree?
Purchasing Agent and Product Safety Engineer
Out of the options above being a purchasing agent and product safety engineer often requires a degree to perform. The other options are commonly training needed but are able to be taught and not just require a Bachelor Degree.

8 0

3 years ago

The basic lesson of M&M theory is that the value of a firm is dependent upon: A. Size of the stockholders' claims. B. The to

weqwewe [10]

Answer:

The total cash flow of the firm

Explanation:

The M & M theory is a theory developed by Modgliani Miller about the capital structure of a company and its overall value .

The theory was first enacted under the assumption of a perfectly efficient market and when the effects of taxes and bankruptcy costs were not considered, However , he later developed another theory where tax and other costs are now considered to address the real world condition.

In summary , the basic lesson is that the value of a firm is dependent on the total cash floe of the firm.

3 0

3 years ago

Why is education considered as foundation of any profession

kupik [55]

Answer:

see below

Explanation:

Education is important for all careers. It all allows access to quality learning, acquiring skills and knowledge, and people skills that employers consider mandatory. Today, all careers and professions require a minimum level of education as a prerequisite for employment.

Education helps one identify their talents, which facilitates selecting suitable careers. Education provides the chance for one to follow a career path that leads to their preferred profession. One studies the subjects that interest them and the ones that lead to desired careers.

Education exposes one to different career opportunities. Through guidance and counseling, and personal preferences, one is able to identify and select a career of their choice.

Different careers require different educational levels. Appreceiteroship is also part of education. One learns from an established professional. Some career such as medicine and architecture requires many years of education.

8 0

3 years ago