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
Arturiano [62]
4 years ago
12

X-treme Vitamin Company is considering two investments, both of which cost $22,000. The cash flows are as follows: Year Project

A Project B 1 $ 25,000 $ 22,000 2 12,000 11,000 3 8,000 14,000 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B.
Business
1 answer:
olga2289 [7]4 years ago
4 0

Answer:

0.88 year and 1 year

Explanation:

The computation of the payback period for Payback period for Project A and Project B is shown below:

Payback period = Initial investment ÷ Net cash flow

For Project A

Initial investment = $22,000

Year 1 = $25,000

Since the initial investment is less than the annual cash flows so the payback period is

= 0 years + ($22,000 ÷ $25,000)

= 0.88 years

For Project B

Initial investment = $22,000

Year 1 = $22,000

So, the payback period is

= $22,000 ÷ $22,000

= 1 year

You might be interested in
During the current year, assets increased from $11,000 to $19,000, and liabilities decreased from $9,000 to $7,500. If no additi
garik1379 [7]

Answer:

$34,500

Explanation:

Calculation to determine total revenues for the year

Using this formula

Total revenues=Increase in Assets+Decreased in liabilities+Dividends+Expenses

Let plug in the formula

Total revenues=($11,000-$19,000)+($9,000-$7,500)+$4,000+$21,000

Total revenues=$8,000+$1,500+$4,000+$21,000

Total revenues=$34,500

Therefore total revenues for the year is $34,500

6 0
3 years ago
3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of 717 million. Assume 3M pu
Lesechka [4]

Answer:

4.8 times

76 days

Explanation:

Inventory Turnover is the numbers of times that an inventory is sold in a period. It shows that is there any excessive inventory available in respect to the current sales level.

Formula for Inventory Turnover

Inventory Turnover = Inventory Used during the year / Average Inventory

Inventory Turnover = 3,784 million / ( ( $855 + $717 ) / 2 )

Inventory Turnover = 3,784 million / $786

Inventory Turnover = 4.8 times

Number of days Sales is the numbers of days that a company takes to to be sold.

Numbers of Days Sales = 365 / Inventory Turnover ratio

Numbers of Days Sales = 365 / 4.8 = 76.04 = 76 days

6 0
3 years ago
The​ Mini-Case "Pay-for-Delay​ Agreements" states that some incumbent producers of drugs with expiring patents paid potential ge
kherson [118]

Answer: charge a monopoly price

Explanation:

Patents provide an exclusive right to the firm in the production and sale of a drug. This provides the firm exclusive market power to decide the price and the quantity and therefore the firm is able to charge a monopoly price and also earn monopoly profits.

When an existing patent expires and the generic producers enter the market, the price reduces due to an increase in the supply of the erstwhile patented drug. This will reduce the monopoly profit of incumbent producers. Therefore, they will seek to deter the entry of generic drug makers in order to safeguard their monopoly profits and price.

Therefore, incumbents were willing to give enough to potential entrants so as to make them delay entry to charge a monopoly price.

The effect of the 2013 Supreme Court decision allowing legal action against these companies is increase in the cost of pay-for-delay agreements and also reduce incumbent profits from these agreements.

8 0
3 years ago
Omar is Precise Service Company's chief executive officer. On Precise's behalf, Omar solicits business, hires and fires workers,
DaniilM [7]

Answer:

The correct answer is the option A: a principal.

Explanation:

To begin with, the term of <em>''principal''</em> in the field of business refers to the individual who may have many roles inside an organization but he is basically one of the most importants person in the company. Moreover, the figure of the principal is sometimes related to the owner of the business or to the chief executive officer as well. Therefore that Omar is most likely a principal in Precise Service Company.

7 0
4 years ago
At the present time, funds are limited for calvet program mortgage loans. a decision must be made to give one veteran a loan ove
jeka57 [31]
<span>The veteran chosen would probably be Veteran B. Veteran A seems like he has been doing well for himself financially, and additional funds would only help to enrich him further. Veteran B has a more immediate need for the money: to buy a house large enough for him and his mother, who is probably the caretaker due to his severe injury.</span>
4 0
3 years ago
Other questions:
  • If the demand for money is $100 billion and the supply of money is $200 billion, then the interest rate will: fall. rise. remain
    15·1 answer
  • A good leader will have followers who ______. a. Are willing to comply with commands b. Must be forced to comply with commands c
    7·2 answers
  • Ordonez Lumber Yard has a current accounts receivable balance of $442,016. Credit sales for the year just ended were $9,358,610.
    9·1 answer
  • With tradable emissions permits, the main problem is to determine the _____, while with emissions taxes the main problem is to d
    13·1 answer
  • Today you deposited $15,000 into a 5-year CD that will pay 6 percent interest. How much will you withdraw from the account in 5
    8·1 answer
  • I s lasagna just spaghetti cake?
    7·2 answers
  • Transferring a strategic plan into a reality can take more than planning. Provide an example of a leader who has transformed a s
    15·1 answer
  • Ace Ventura, Inc., has expected earnings of $5 per share for next year. The firm's ROE is 15%, and its earnings retention ratio
    15·1 answer
  • What is the manager​
    11·2 answers
  • At the beginning of 2017, Miyazaki Company's Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!