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STatiana [176]
3 years ago
14

A firm is evaluating a capital budgeting project that generates cash inflows equal to $50 per year for the next five years. If t

he project's traditional payback period (PB) is 3.6 years, what is its initial cost? a. $180 b. $200 c. $140 d. $120 e. $150
Business
1 answer:
Anna11 [10]3 years ago
3 0

Answer:

Initial Cost = $180

Explanation:

Payback period estimates the time an investment projects resulting cash flows take to recover the initial amount o=invested in the project. A traditional payback period doesnot take present value into account and just focuses on the nominal recovery of the initial investment.

If a capital budgeting project provides inflows of $50 per year and the payback period is 3.6 years, the initial investment is:

3.6 = 50 + 50 + 50 + x

Where x = 0.6 of 50

and x = 0.6 * 50 = 30

Initial cost = 50 + 50 + 50 + 30 = $180

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Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. T
Dmitry_Shevchenko [17]

Answer:

Explanation:

A common sized income statement is a method of financial statement that express every line item on a financial statement as a percentage of sale for the ease of financial analysis

                             Tannenhill's              %        Industry average

Revenue               2,480,000             100                  100%

Cost of Goods      1,587,200                64                    70

Gross profit           892,800                  36                  30

Selling expenses    545600                 22                    17

Admin expenses     198400                  8                       7

Total ope. Expe.       744000                30                    24

Ope. Income             148600                 6                      6

Other Revenue          49600                  2                      2

                                   198400                 8                      8

Other Expenses         24800                  1                        1

PBIT                             173600                7                       7

Income Tax                  74400                 3                       5

Net Income                  99200                4                       2

7 0
3 years ago
Assume that locating a cement factory in the middle of Boston would save the producer $5 million at a public expense, in polluti
never [62]

Answer:

$5 million

Explanation:

If we follow the Coase Theorem, the appropriate solution to this case should be obtained regardless of initial rights. In this case, the factory saves $5 million to the producer, but it costs $10 million to Boston residents. if Boston residents pay $5 million or more to the factory owner, then both would benefit. Boston residents will gain $10 - $5 = $5 million, as well as the factory owner.

7 0
2 years ago
In tax year 2020, a married taxpayer with AGI of $300,000 had gross investment income of $6,150 (which included a long-term capi
Irina-Kira [14]

The amount of net investment income tax that the taxpayer is required to pay is $231.

<h3 />

<h3>What is net investment income tax?</h3>

Net Investment Income Tax are generally imposed by the Internal Revenue on entities' net investment income.

Net investment income tax = ($6,150 - $75) * 3.8%

Net investment income tax = $6,050 * 3.8%

Net investment income tax = $231

In conclusion, the amount of net investment income tax that the taxpayer is required to pay is $231.

Read more about income tax

<em>brainly.com/question/25257355</em>

8 0
2 years ago
If the exchange rate for canadian and u.s. dollars is 0.82777 to 1, this implies that 3 canadian dollars will buy ____ worth of
Delvig [45]
0.82777 Canadian dollars = 1 US dollars
1 Canadian dollar = (0.82777 /1.000) US dollars
3 Canadian dollars = ((0.82777 /1.000) x 3) = $2.48331
8 0
3 years ago
The reason a user account was locked out will be investigated within _______ and the documentation of the reason will be kept fo
iren [92.7K]

Answer:

72 hours, 12months

Explanation:

When a user gets locked out of his/her account, it is usually investigated within 72 hours of the complaint being laid. that is 3days.

When the reason is found and and told to the user, the reason is documented and kept for 12 months within which time if there is any need for reference, the document can be easily retrieved and gone through.

Cheers.

5 0
3 years ago
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