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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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A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 116% of its $1,000

Anna35 [415]

Answer:

$1,174.75

Explanation:

The computation of the invoice price of the bond is shown below:

As we know that

Invoice Price of Bond = Ask Price of Bond + Accrued interest

where,

Ask Price is

= $1,000 × 116%

= $1,160

Interest accrued for 3 months is

= $1,000 × 5.90% × 3 months ÷ 12 months

= $14.75

So,

Invoice Price of Bond is

= $1,160.00 + $14.75

= $1,174.75

3 0

3 years ago

What is the purpose of a Quality Rating and Improvement System (QRIS) in the child care?

larisa86 [58]

THE CORRECT ANSWER IS D!

7 0

2 years ago

Crystal Industries is considering an expansion project with cash flows of -$287,500, $107,500, $196,100, $104,500, and-$92,700 f

GaryK [48]

Answer:

E. Yes: The MIRR is 9.13 percent.

Explanation:

The First Step is to Calculate the Terminal Value at end of year 4.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 5 - n)

= $107,500 x (1.134) ^ 3 + $196,100 x (1.134) ^ 2 + $104,500 x (1.134) ^ 1 + -$92,700 x (1.134) ^ 0

= $156,764.47 + $252,175,97 + $118,503 - $92,700

= $434,743.44

The Next Step is to Calculate the MIRR using a Financial Calculator :

- $287,500 CFj

0 CFj

$434,743.44 CFj

Shift IRR/Yr 9.13%

Therefore, the MIRR is 9.13% .

4 0

3 years ago

f the project manager controls when and what people do while the functional managers control who will be assigned to the project

faust18 [17]

Answer:

The correct answer is Matrix.

Explanation:

In a matrix structure each manager is in charge of the results and tasks executed in his area. Employees are usually accountable to one person who generally manages the project and to another who directs a specific area. The great advantage of this structure is that it allows direct communication, making it possible to take corrective measures faster, in the same way it allows each person to focus on each task so that they can transmit some requirement to the closest person.

3 0

3 years ago

Read 2 more answers

During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-te

VikaD [51]

Answer:

The net financing cash flows is $5000 as shown below.

Explanation:

The net financing cash flows is calculated below:

Receipt from bank for long-term borrowing $6000

Payment of dividends ($1000)

Net financing cash flows $5000

Receipt of $10000 relates to operating cash flows as it is cash receipt in the ordinary course of business

Payment to suppliers of $5000 is an operating cash flow as well as suppliers are paid for supplying the items that the business deals in, same applies to payment to workers of $2000.

Lastly, the payment for machinery of $8000 relates to investing activities of the business as it an expenditure incurred to generate more returns.

5 0

3 years ago