1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Under _____ reserve banking, banks hold only a small portion of deposits in reserve, and they lend the rest
Arlecino [84]
It is called Federal Reserve Banking.
7 0
3 years ago
The cost-benefit principal states that
REY [17]

Cost-benefit principle would state that you would only take an action if the benefit outweighs the cost.

For example: It may cost me $5 to drive to work, but I make $50 for showing up, I would go because the benefit I get outweighs the cost and I am better off going than staying at home.

6 0
3 years ago
The FDA supervises standards of quality and consistency of drugs today. <br><br> True <br> False
Soloha48 [4]
True. Hope this helps!
7 0
3 years ago
The term "management" refers to the process of getting things done, effectively and efficiently, through and with other people.
galben [10]

Answer:

Management implies a conception and practice regarding power, administration and ways of building consensus and hegemony within an organization or institution. Management is the way to carry out the articulation between the perspectives, through the organizational modes that serve the same and that are consistent with the fines and objectives of the institution.

Explanation:

According to this, the management action crosses the entire institution, in its relationships, in internal coordination, in the ways of establishing work ties, working communities, in the set of options that are adopted when interacting with other institutions It is not just driving or direction. It is the coordination of work processes within the framework of an organization, where roles and tasks are given, which in principle can be articulated generating levels of management.

6 0
3 years ago
In the process of brainstorming his goals, Robert realized his Web business was more about money than creativity. His decision t
Rasek [7]
From what I understand here, it is the company that will be creating the 5000 monthly income. This is an example of a specific measurable goal since the goal of Robert is to make sure that the monthly net income of his company would reach at least 5000. Since he is the boss of his company, this is also probably his personal mission for his company so that he will be motivated to keep on bringing his company to better heights. This will also probably motivate his employees to work harder as well.
4 0
3 years ago
Read 2 more answers
Other questions:
  • Hypothetical situation: The economy has been declining for six months. The unemployment rate has increased by 2 percent in the p
    12·1 answer
  • If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher t
    15·1 answer
  • Martin Buber Co. purchased land as a factory site for $400,000. The process of tearing down two old buildings on the site and co
    15·1 answer
  • Suppose that SoS sells both versions and wants to charge different prices for different versions. What is the highest price of t
    15·1 answer
  • A good example of central planning at work in the U.S. would be: Select one:
    6·1 answer
  • Tammy and Wyatt are sales associates at the same used car dealership. Their supervisor is planning to promote the employee with
    5·1 answer
  • Which of the following products probably accounted for by a company using a job order costing system? A) facial tissue B) Hershe
    10·1 answer
  • Why do lenders often require a down payment when credit is used to purchase a good?
    14·1 answer
  • This is for business management, can anyone help me?
    8·1 answer
  • With critical internal metrics collected as part of the market information system, management is able to do two things. First, m
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!