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sergiy2304 [10]
3 years ago
15

X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven

years. Machine A costs $52,000, and Machine B costs $71,000. Estimated annual cash flows with the two machines are as follows: Year Machine A Machine B 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 5 -6,000 -3,000 6 -5,000 -2,000 7 -4,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in years)?

Business
1 answer:
Anastaziya [24]3 years ago
7 0

Answer: 0 years

Explanation:

The payback period calculates the amount of time taken to recoup the initial investment made in a project or in the purchase of a machine or building. It calculates how long the cumulative cash flow generated from a project equals the cost of the project.

The payback period for both machines are zero years because the cumulative cash flow is less than the cost of the machine.

For machine A - cumulative cash flow- $-47,000 is less than -$71,000

For machine B - cumulative cash flow, -$7,000 is less than -$52,000

Explanations on how the figures were derived is found in the attached tables.

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Colby would rate low on openness to experience, while Carleton would rate high on this dimension based on the five-factor model.

Since Colby’s thinking is conventional, he would most likely stick with the common and proven methods in handling a business, thus, the rationale on his low rating to openness to experience.

7 0
3 years ago
A deposit of $100,000 is made to an investment account today. At the end of each of the next four years, $10,000 must be paid ou
andrey2020 [161]

Answer:

14.06%

Explanation:

Assume their is a cash out flow today of $100000, and next four year annual cash inflow of 10000 and 120000 at the end of year 4.

We can use IRR formula to find the interest rate.

year                            cashflow

0                                   -100000

1                                      10000

2                                     10000

3                                     10000

4                                     130000

IRR                                 14.06%

The calculation has been done on excel sheet

8 0
3 years ago
When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.
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Because Interest rates typically decline during recessions as loan demand slows, bond prices rise and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. No price in the economy is as important as the price of money. Interest rates arguably drive the business cycle of expansion and contraction.

Interest rate is the amount a lender charges a borrower and is a percentage of the principal the amount loaned.

Recession is a period when the business and industry of a country is not successful.

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To know  more about the Interest Rate here

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4 0
1 year ago
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The job offers can be found through Networking, Referrals, company websites, job fairs and social media.

The another method is through employment agency, are agencies that are trying to match up the job applicants to job that suits them. They have a connection with the organization and there is a high probability of landing a job with the organization.

Also, it is necessary to upgrade yourself to the area of specialization. If IT skilled then the job seeker should train on it to get placed on that relevant organization.

3 0
3 years ago
A marketing campaign makes unsubstantiated claims for the product it is promoting. Under ________, such advertisements would be
vredina [299]

Answer:

Section 5 of the FTC Act

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Section 5 of the FTC Act prohibited companies to make "deceptive actions"  during all activities in a commerce.

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3 years ago
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