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Korvikt [17]
3 years ago
14

A company is planning to purchase a machine that will cost $24,000 with a six-year life and no salvage value. The company expect

s to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? Sales $ 90,000 Costs: Manufacturing $ 52,000 Depreciation on machine 4,000 Selling and administrative expenses 30,000 ( 86,000 ) Income before taxes $ 4,000 Income tax (50%) (2,000 ) Net income $ 2,000 Multiple Choice 24 years. 12 years. 6 years. 4 years. 1 year.
Business
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer:

The correct option is 4 years

Explanation:

Payback period is the length of time it takes an investment to repay itself.By repaying itself I meant the time horizon taken for the initial capital outlay from a project to be recovered.

Payback period=initial investment /net annual cash inflow

initial investment is the $24,000 spent in acquiring the new machine

net annual cash flow =net income+depreciation

depreciation is added because it is not a cash flow in real  sense

net annual cash flow=$2000+$4000=$6000

payback period=$24,000/$6000= 4 years

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How do you know if you are eligible to open and make contributions to a Roth IRA?
Whitepunk [10]

Answer:

The correct answer is letter "B":You have to earn below a certain amount to make contributions .

Explanation:

A Roth Individual Retirement Account (IRA) is the type of retirement account where contributions grow tax-free and allows individuals to withdraw funds under certain conditions. <em>People are eligible to open a Roth IRA as long as their income is less than $139,000 for singles and $206,000 for married couples- </em>information that applies for the year 2020.

7 0
3 years ago
A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of th
xenn [34]

Answer:

Hence, the net income earned or net loss incurred by the business during the year $102,340.

Explanation:

3 0
3 years ago
Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stoc
Scorpion4ik [409]

Answer:

 Value of  one right   = $2.63

Explanation:

<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>

<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>

Value of rights= Theoretical ex-right price - Right price

<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>

Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues

<em />

1 unit  of old share       at   $25.25 =  $25.25

I unit of right share   at       $20.00= <u>$20.00</u>

Total value of 2 shares                     <u>$ 45.25</u>

Theoretical ex-rights price  = 45.25/2 =$22.63

Theoretical ex-rights price=$22.63

Value of rights= Theoretical ex-right price - Right price

                       =  22.63 - 20.00

 Value of  one right   = $2.63

6 0
3 years ago
4. List two methods of eliminating excess surface fat on food after frying.
FromTheMoon [43]

Hi,

Below are two methods of removing excess fat from food after frying:

Bread topping:

Place a layer of bread pieces over the whole surface of dish in which fried food is to be transferred. Let the food stay there for few minutes. After this time, discard the bread pieces and the food will have minimum surface fats. This is because bread pieces soak up the fats and oils from the food surface.

Dish cooling:

Another method of eliminating fats is to cool down the food you have fried in fridge for some time. When the food will be cooled the layer of fats and oils will be deposited over food in solid form. After removing from the fridge you can remove the solid layer with some tool like spoon back and the again reheat. This process is a little time consuming but a great way to eliminate extra fats from food.

Hope it help!

5 0
3 years ago
Read 2 more answers
Classified stock differentiates various classes of common stock, and using it is one way companies can meet special needs such a
valentina_108 [34]

Answer: True

Explanation:

Classified stocks are referred to as the stocks of a publicly-traded company which possess different classes of stocks. Classified shares typically has some special privileges, like the dividend rights and the enhanced voting rights.

The use of classified stock allows the founders of a company to have control over the company despite not having to own the majority of the common stock. Therefore, the correct option is True.

6 0
3 years ago
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