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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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The monopolistic advantage theory suggests that firms in oligopolistic industries are likely to _______________ foreign direct i
Andreyy89

Answer:

Group of choices:

A. increase

B. reduce

C. ignore

D. not change

E. none of the above

The correct answer is A. Increase.

Explanation:

The company has, within the national sphere, a monopolistic advantage that should be extended abroad.

Monopolistic advantage theory can take many forms:

* Ability to control a specific product differentiated, because other companies do not have the know-how.

* Exclusive control over raw material or other necessary inputs / components.

* Low unit cost of production due to the large volume of it.

Limitations: Do not replenish because production abroad is the preferred way to exploit these advantages and not through exports or licenses.

8 0
3 years ago
Read 2 more answers
Daniel Custom​ Cycles' common stock currently pays no dividends. The company plans to begin paying dividends beginning 3 years f
svetoff [14.1K]

Answer:

stoke price in 2 year is $30

current stoke price is $22.68

Explanation:

Given data

dividend in 3 year = $3.00

grow rate = 5% = 0.05

return = 15% = 0.15

to find out

pay for the stock​ today

solution

we know there is no dividends for first 3 year after they need to pay

so first we calculate stoke price in 2 year from this formula i.e.

stoke price = dividend in 3 year /  ( return rate - grow rate )

put these value

stoke price = 3 /  ( 0.15 -  0.05 )

stoke price in 2 year is $30

now we calculate current price for stoke by discounting stoke in 2 year by this formula to 2 year

current stoke price = stoke price in 2 year  / (1 + return rate )²

current stoke price = 30  / (1 +  0.15 )²

current stoke price is $22.68

7 0
3 years ago
Which of the following is not a recognised type of plan?
makvit [3.9K]

Answer:

Ad hoc

Explanation:

Ad hoc is not a recognized type of plan. The following are plans that are 100% recognizable:

Business plan, Succession plan and Financial plan.

Ad hoc is a Latin word which means "for this" or "for this situation". In English, it is used to explain what has been formed for a special purpose without planning.

3 0
3 years ago
Storm Windows Company understated their ending inventory during their first year of operations by $2,000. What is the effect of
SIZIF [17.4K]

Answer:

$2000 understatement of net income

$2000 overstatement of costs of goods sold

Explanation:

In the production process raw materials are inputted in the process, these are converted to work in process, and finally to finished goods.

The finished goods are now sold to the customer.

Since the amount of inventory was understated the balance must be moved from finished goods inventory to finished goods inventory.

The income earned will be understated because inventory will be short of $2,000 and also income will be short by this amount.

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3 0
2 years ago
The estate in bankruptcy does NOT include one of the following:_______
Vlada [557]

Answer:

Property that was sold three years ago by the debtor(A)

Explanation:

Property that was sold three years ago by the debtor :  Debtor has no legal claim on the property of the bankrupt.

Community property: This is also knows as marital property. It belongs to both partners in marriage. Community property is part of the bankruptcy estate, even if only one spouse files for bankruptcy.

Property transferred in a transaction voidable by the trustee : these are transactions that trustee can prove to be voidable and recover  transferred assets back to the bankrupt provided it can be proven to  have been improperly transferred.

Proceeds and profits from the property of the estate : These are income realized from the estate after trustee fee has been paid and other associated expenses.

5 0
3 years ago
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