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aleksklad [387]
3 years ago
5

Brutus Inc is considering the purchase of a new machine for $500,000. It is expected that the equipment will generate annual cas

h inflows of $100,000 and annual cash outflows of $37,500 over its 10 year life. Annual depreciation is $50,000. Compute the cash payback period.
Business
1 answer:
anygoal [31]3 years ago
6 0

Answer:

8 years

Explanation:

Given: Cost of new machine= $500000.

           Annual cash inflow= $100000.

           Annual cash outflow= $37500.

First, we will calculate annual payback or cash inflow.

Annual payback= (cash\ inflow - cash\ outflow)

∴Annual payback= (\$ 100000 - \$ 37500)= \$ 62500

Now computing cash payback period.

Cash payback period= \frac{initial\ investment}{annual\ payback}

Cash payback period= \frac{500000}{62500} = 8\ yrs

∴ Cash payback period is 8 years.

When payback period is short then investment is more attractive.

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Answer:

Amount recorded will be $95000

Explanation:

We have given that company purchased a land for $80000

Accrued taxes on the property = $12000

Incurred $5000 to remove an old building

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Answer:

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Explanation:

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Size of business affects the economies of scale, larger the firm the more will be savings on cost.  

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3 years ago
The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar
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It should be noted that the relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a Social classes.

<h3>What is a Social classes?</h3>

Social classes  can be regarded as the society's relatively divisions which involves member that share similar values as well as behaviors.

Learn more about Social classes at;

brainly.com/question/1065123

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During April, a customer asks you to create an arrangement for an invalid friend who must stay at home for five more days. The i
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_______ data would be useful for creating a report containing last year's revenue, which won't be changing.
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