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mezya [45]
3 years ago
9

You are considering 3 independent projects, project A, project B, and project C. Given the following cash flow information, calc

ulate the payback period for each
Project AProject BProject C
Initial Outlay-1,000-10,000-5,000
Inflow Yr 16005,0001,000
Inflow Yr 23003,0001,000
Inflow Yr 32003,0002,000
Inflow Yr 41003,0002,000
Inflow Yr 55003,0002,000
If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted?

Full Point will be given for work shown
Business
1 answer:
iris [78.8K]3 years ago
6 0

Answer:

Project A should be accepted as it has less payback period

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

For Project A

In year 0 = $1,000

In year 1 = $600

In year 2 = $300

In year 3 = $200

In year 4 = $100

In year 5 = $500

If we sum the first 2 year cash inflows than it would be $900

Now we deduct the $900 from the $1,000 , so the amount would be $100 as if we added the third year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $200

So, the payback period equal to

= 2 years + $100 ÷ $200

= 2.5 years

For Project B

In year 0 = $10,000

In year 1 = $5,000

In year 2 = $3,000

In year 3 = $3,000

In year 4 = $3,000

In year 5 = $3,000

If we sum the first 2 year cash inflows than it would be $8,000

Now we deduct the $8,000 from the $10,000 , so the amount would be $2,000 as if we added the third year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $3,000

So, the payback period equal to

= 2 years + $2,000 ÷ $3,000

= 2.67 years

For Project C

In year 0 = $5,000

In year 1 = $1,000

In year 2 = $1,000

In year 3 = $2,000

In year 4 = $2,000

In year 5 = $2,000

If we sum the first 3 year cash inflows than it would be $4,000

Now we deduct the $4,000 from the $5,000 , so the amount would be $1,000 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $2,000

So, the payback period equal to

= 3 years + $1,000 ÷ $2,000

= 3.5 years

So, Project A should be accepted as it has less payback period

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Anna71 [15]

Answer:

The correct option is;

a. The Limited

Explanation:

Business-to-Consumers or B2C is the means by which  company products and services are sold directly to the end-users or consumers. B2C companies are those that deal directly with the end users

Sears, has over 400 outlets, Williams-Sonoma,  is a publicly listed company that deals on home furniture and kitchen ware products   and J. C. Penny is also a listed department store chain having 840 locations o outlets.

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Answer:

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Explanation:

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Now the increase in sales needed for break even is

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3 years ago
In a business-to-business transaction, the seller offers the buyer a 2 percent discount for paying a bill early. Assuming the us
chubhunter [2.5K]

Assuming the user took advantage of this offer, the amount that would be discounted on a $10,000 invoice is: $200.

<h3>Discounted amount </h3>

Using this formula

Discounted amount =Discount rate× Invoice

Let plug in the formula

Discounted amount=2%×$10,000

Discounted amount=$200

Therefore assuming the user took advantage of this offer, the amount that would be discounted on a $10,000 invoice is: $200.

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8 0
1 year ago
A financier plans to invest up to $500,000 in two projects. Project A yields a return of 9% on the investment of x dollars, wher
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Answer:

She should invest $300,000 in Project A, and $200,000 in Project B.

Explanation:

Solution

Since Project B yields a higher return, she should invest as much money as possible in it, which is 40% of the total investment  or

or (0.40)($500,000) = $200,000

so

The remaining $500,000 - $200,000 = $300,000 should be invested in Project A.

Therefore, she should invest $300,000 in Project A, and $200,000 in Project B.

5 0
3 years ago
Luis has $170,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis
serious [3.7K]

Answer:

Luis will have $ 1,153,675.657524 in his account at the time of his retirement.

Explanation:

Acording to the data Luis has $170,000 in his retirement account

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Current account = $ 650,838.260724

Acording to the data Luis also plans to put $2000/quarter into the new account until his retirement 30 years from now.

The future value (FV) of the account will be

FV = 2000[(1 + (0.045/4))^(4*30) -1] / (0.045/4)  0.01125

FV = $ 502,837.3968

Therefore, to calculate how much will Luis have in his account at the time of his retirement we have to calculate the following:

Total amount = Current account+FV

Total amount = $ 650,838.260724 +  $ 502,837.3968

Total amount = $ 1,153,675.657524

Luis will have $ 1,153,675.657524 in his account at the time of his retirement.

4 0
3 years ago
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