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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

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Bramble Corp. on July 15 sells merchandise on account to Sheridan Company for $4000, terms 3/10, n/30. On July 20 Sheridan Compa
Vaselesa [24]

Answer:

Amount of cash flow will be $2328

So option (B) will be the correct answer

Explanation:

We have given total merchandise = $4000

And return merchandise = $1600

Here \frac{3}{10} means if Sheridan Company makes the payment within 10 days then he will get discount of 3 % as in the question he makes the payment within 10 days so he will will get 3 % discount

Now amount of cash received = total merchandise - return merchandise

= $4000 - $1600 = $2400

Now discount is 3 %

So after discount amount received =2400-2400\times 0.03=2400-72=$2328

So option (B) will be the correct answer

4 0
3 years ago
A decade after world war i ended, a significant event occurred that caused consumer sales resistance, corporate budget cutting a
natta225 [31]
The Great Depression
6 0
3 years ago
a mature manufacturing firm. The company just paid a dividend of $8.65, but management expects to reduce the payout by 5 percent
-BARSIC- [3]

Answer:

$48.34%

Explanation:

Data provided in the question

Growth rate = 5%

Required return = 12%

Dividend = $8.65

Based on the above information,

The computation of the current price is shown below:-

Current Price = Dividend × (1 + Growth Rate) ÷ (Required Return - Growth Rate)

= $8.65 × (1 + (-5%)) ÷ (12% - (-5%))

= $48.34%

Therefore for computing the current price we simply applied the above formula.

4 0
3 years ago
A periodic review system is __________. a. a term used to indicate the amount of demand b. to be met under conditions of demand
vladimir2022 [97]

Answer:

The correct answer is letter "C": an inventory system that is used to manage independent demand inventory.

Explanation:

A Periodic Review System is used to keep track of the inventory of a firm after determined periods. Review intervals are set by the company in an attempt to find out the amount of stock needed to fulfill consumers' orders or to reach the company's Target Inventory (TI). This inventory system is used to handle independent demand inventory.

3 0
3 years ago
With ____, a company deliberately sets a low price with the express idea of driving its competition out of business.
Sveta_85 [38]

With <u>predatory pricing</u>, a company deliberately sets a low price with the express idea of driving its competition out of business.

Predatory pricing is a pricing strategy, the usage of the method of undercutting on a bigger scale, wherein a dominant firm in an enterprise will intentionally reduce the fees of a service or product to loss-making stages within a short-time period.

Predatory pricing is the lowering of charges by a corporation specifically to put rival companies out of business. with the aid of doing away with the opposition, the enterprise edges closer to turning into a monopoly, a privileged position of marketplace dominance that might allow it to fix prices and stay away from the natural laws of supply and demand.

In a short time period, predatory pricing creates a buyer's marketplace, in which customers are able to “shop around” and generally attain goods at a decreased price. For agencies, profitability declines as competitors actively try and undercut every other's costs and divert visitors to their personal business.

Learn more about Predatory pricing here brainly.com/question/12751629

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6 0
1 year ago
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