You are responsible for implementing activities for a group of six foreign students and eight American students who are they
Answer:
Yes, Tangshan Mining company should accept the project.
Explanation:
Payback period is the number of years it takes for a project's expected cash inflows to recover the initial investment amount.
Tangshan company's required payback period = 3.5 years
<u>Year CF Net CF</u>
0 -5,000,000 -5,000,000
1 1,800,000 -3,200,000
2 1,900,000 -1,300,000
3 700,000 -600,000
4 1,800,000 1,200,000
<em>Payback period = last year with -net CF +(absolute net CF that year /total CF the following year)</em>
Payback period = 3 + (600,000 / 1,800,000)
=3 + 0.33
= 3.33 years
Since 3.33 years is lower than the required payback period of 3.5 years, Tangshan Mining company should ACCEPT the new project; it will take less years to fully recover the initial amount investment.
Answer:
$66,667
Explanation:
Contribution margin = Sales Revenue - Variable cost = 240000-60000 = 180000
Percentage of contribution margin = Contribution margin / sales revenue = 180000 / 240000 = 75%
Breakevent point in total sales = Fixed costs / Percentage of contribution margin
= 50000/0.75 = $66,667
To annotate something is to look over. You need to re-check your mail before you send it off. Make sure the address is right. Make sure everything on there is correct before you send it off. The people that deliver the mail need to make sure they are giving the right person the right mail.<span />
Answer:
In each succeeding payment on an installment note:
b. The amount that goes to interest expense decreases.
Explanation:
With each installment settled, the principal amount will continue to reduce and as a result, the amount that will be recognized as interest expense will also decrease. This is because the interest expense is calculated based on the principal amount, which is decreasing with each installment. The interest expense for a previous period will not be the same for the future period.
