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vodka [1.7K]
3 years ago
10

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $142,104. It will have

a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $41,800. Compute the cash payback period.
Business
1 answer:
Usimov [2.4K]3 years ago
7 0

Answer:

3.72 years

Explanation:

The cash payback period of this investment is the initial investment of $142,104 divided by net increase in cash in cash flow per period.

Cash Payback Period = Initial Investment /Net increase Cash Flow per Period

Net increase in cash flow per period=$80,000-$41,800=$38,200

Cash payback period=$142,104/$38,200=3.72 years

It would take 3  years 9 months(0.72*12 months) for the project to pay back its initial investment of $142,104

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Answer:

The amount of the increase to the Cash account is $10,450

Explanation:

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3 years ago
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You go on vacation to Mexico and take $1,000 with you. During your time in Mexico, the peso appreciates in value relative to the
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Answer:

We will be able to purchase fewer goods and services.

Explanation:

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An appreciation in the value of peso in terms of dollars means that the worth of peso has increased in terms of dollar.

In other words, the worth of dollar in terms of peso has decreased. The value of $1,000 will decline.

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3 years ago
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North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the end of year 1, North accrued and deducted the follow
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2 years ago
Sandhill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer
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Answer:

$2,319,000

Explanation:

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3 years ago
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