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AlekseyPX
3 years ago
5

Ribelin Corporation is adding a new product line that will require an investment of $218,000. The product line is estimated to g

enerate cash inflows of $32,000 the first year, $18,000 the second year, and $21,000 each year thereafter for ten more years. What is the payback period? A. 856 years B. 10.42 years C. 10.00 years D. 11.17 years
Business
1 answer:
Vikentia [17]3 years ago
6 0

Answer:

C. Payback is 10 years

Explanation:

Payback is the number of years it will takes to recover the initial investment, which in this case translates to: how long will it take for Ribelin Corpration to recover the  $218,000 investment given the stated cash-flows.

Year Cash-flow     Balance

0        (218,000.00)        (218,000.00)

1        32,000.00            (186,000.00)

2        18,000.00            (168,000.00)

3        21,000.00             (147,000.00)

4         21,000.00             (126,000.00)

5        21,000.00              (105,000.00)

6        21,000.00              (84,000.00)

7        21,000.00               (63,000.00)

8       21,000.00                (42,000.00)

9        21,000.00               (21,000.00)

10        21,000.00                -    

11        21,000.00             21,000.00  

12        21,000.00            42,000.00  

By end of year 10, total inflows are exactly equal the initial investment, therefore it will take them 10 years

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NeNe is an accountant and a U.S. citizen who has accepted a permanent position in Madrid, Spain, for a Spanish financial service
s2008m [1.1K]

Question options:

a) NeNe can exclude all of the housing payment because she worked more than 330 days overseas

b) 16,128

c) 23,872

d) 14,112

e) None of her salary can be excluded from gross income

Answer:

a) NeNe can exclude all of the housing payment because she worked more than 330 days overseas

Explanation:

US citizens working and living abroad would still have to remit taxes to the US, albeit with exclusions.

Under US tax law, IRS states that US citizens may deduct/exclude the value of meal and lodging expenses granted to them by the employer. Under the foreign housing exclusion, Nene qualifies for the benefits of housing exclusion because she has a foreign earned income and has lived at least 330 days within a period of 12 consecutive months in the foreign country.

4 0
3 years ago
the accounts receivable account has a total debit postings of 1900 and credit postings of 1100.The balance of the account is a/a
hram777 [196]

Answer:

$800 Debit.

Step by step explanation:  

We have been given that the accounts receivable account has a total debit postings of 1900 and credit postings of 1100.

Since debit postings are more than credit postings, so the balance of the account will be debit.

Let us find how many debit postings will be in the balance of account by subtracting 1100 from 1900.

\text{The balance of the account}=1900-1100

\text{The balance of the account}=800

Therefore, the balance of the account is a $800 debit.

8 0
3 years ago
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Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as
Elina [12.6K]

Answer:

The question is missing the options which are below:

A Real risk-free rate differences.  

B Tax effects.  

C Default risk differences.  

D Maturity risk differences.  

E Inflation differences.  

The correct answer is option C,default risk differences.

Explanation:

Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.

Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:

Balance sheet position

Profitability

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Macro-economic factors and some others.

Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest  when due.

Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.

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Consider the following information carefully and do as per the instruction given under the table below.
strojnjashka [21]

The network diagram for the activities indicated above is given in the attached image.

<h3>What is a network diagram?</h3>

A network diagram is a graphical depiction of a project that consists of a number of connected arrows and boxes that illustrate the interdependence of the project's operations.

The activity description is represented by boxes or nodes, and the interaction between the activities is represented by arrows.

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A network diagram enables a project manager to keep track of each component of a project and easily communicate its status to others.

It also provides:

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6 0
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How are government corporations useful? Group of answer choices a) Both of the above They undermine the private sector b) They h
GrogVix [38]

both of the above are undermine the private sector.

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