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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

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How can firms ensure that their code of business ethics is read, understood, believed, remembered, and acted on rather than igno

igomit [66]

Answer: The best way to ensure that your company has read and understand the code of ethics is to establish a policy for employees to read it every year and that at the end of the reading, take a knowledge test with a minimum of 90% to pass.

Explanation: The code of ethics establishes parameters that standardize the behavior of people linked to a company. By conducting the assessment every year you ensure that people refresh the code of ethics. You can also offer tutorials that serve to get the message better before the evaluation and if someone fails the evaluation, that person must repeat it until they qualify at this 90%.

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3 years ago

Simon purchases a bond, newly issued by Amalgamated Corporation, for $1000. The bond pays $60 to its holder at the end of the fi

monitta

Answer and Explanation:

The computation is shown below:

a. The principal amount is $1,000

The term is 3 years

The coupon rate is 6%

So, the coupon payment is

= $1,000 × 6%

= $60

b. At the closing of the second year, the remaining amount i.e. paid should be

= $1,000 + $60

= $1,060

Now if the rate of interest is 3%

So, the amount of $1,060 one year from today is

= $1,060 ÷ 1.03

= $1,029

And, if the rate of interest is 8%

So, the value of the bond today is

= $1,060 ÷ 1.08

= $981

And, if the rate of interest is 10%

So, the amount of the today bond is

= $1,060 ÷ 1.10

= $964

c. In the case of the bad news related to the amalgamated corporation

that results in the financial investors to have terror that the firm may be go to bankrupt because of non -payment of debt. In the case when the amount of $1,060 is not made so the financial investor would not be pay $1,000 as they are well known that they can earn 6% without have any risk

7 0

3 years ago

Daniel is resigning from his position as a marketing specialist and would like a permanent record of her official resignation. W

Damm [24]

Answer:

a. Letter

Explanation:

A letter is written communication from one party to another. Letters are written on a designated paper, put in an envelope and send either by post or hand-delivered.

A letter can be formal or informal. Daniel should write a formal letter to his boss informing him of his resignation. Should Daniel write a letter, It will an official document in the company. The company will be file the document appropriately and will stay intact for many years.

Daniel can also keep a copy of the letter for himself. A letter has an advantage over the other electronic options. Electronic records can be deleted permanently or get lost should the systems collapse.

4 0

3 years ago

Whar is an incentive

xenn [34]

Answer:

It acts as a stimulus to a market

Explanation:

Incentive encourages people to act in a particular and desired way. It is anything that motivates people to work hard to achieve set objectives.

Since incentives influence behavior, they can act to stimulate the market. Stimulating the market refers to the actions that encourage increased economic activities. Incentives lead to increased levels of activities in the market.

5 0

3 years ago

In which (management) areas of an organization may ethically relevant questions occur? Give examples for each of them!

Helga [31]

The management area of coordinating and directing from the top hierarchies is the where some ethically relevant questions may occur.

<h3>What is an Ethics?</h3>

This refers to some standards that imposes a reasonable obligations to refrain from fraud, slander, gossip etc in a firm.

Some example of an ethical behaviors in the firm are:

obeying company's rules
effective communication
accountability & professionalism
trust and mutual respect

Hence, the management area of coordinating and directing from the top hierarchies is the where some ethically relevant questions may occur.