1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alik [6]
3 years ago
14

What is the discounted payback of a project that has an initial outlay of $20,000 and will generate $6,000 in year 1, $12,000 in

year 2, $9,000 in year 3, and $14,000 in year 4 assuming the cost of capital is 10%?
Business
1 answer:
Masja [62]3 years ago
4 0

Answer:

2.68 years

Explanation:

Year     Inflows   Discount rate 10% PV of cash inflows Cumulative value

1         $6,000    0.9090909091    $5,454.55                    $5,454.55

2       $12000   0.826446281          $9,917.36                     $15,371.90

3      $9,000   0.7513148009   $6,761.83                    $22,133.73

4      $14,000   0.6830134554  $9,562.19                    $31,695.92

Total present value           $31,695.92

Now the discounted payback period is

= 2 + ($20,000 - $15,371.90) ÷ ($6761.83)

= 2 + 0.68 years

= 2.68 years

You might be interested in
How can crazy girlfriend be more understanding
zavuch27 [327]
A crazy girlfriend can be more understanding by them not acting so crazy, jealous and mad.
8 0
3 years ago
Read 2 more answers
What theory asserts that workers want to be taken care of and protected by their leaders?
svlad2 [7]
I believe the correct answer is Theory X.
It is a rather pessimistic point of view which suggests that workers have no ambitions whatsoever and are constantly in need of someone to pat their shoulders and tell them they did a good job. They always need approval even though they are not interested in the work they do.
8 0
3 years ago
Unearned revenue, which represents the company's obligation to honor gift cards previously issued to customers, totaled $6,800 a
Dimas [21]

The correct answer is that there were $51,700 work of gift cards redeemed during the year.

In order to determine the correct answer you need to start with the total balance of the unearned revenue account, which is $6,800. To the starting balance you need to add the amount of gift cards purchased throughout the year, which is $55,000. This total is $61,800. The last step is to subtract the ending balance of the unearned revenue from the total ($61,800 - 10,100), which equals $51,700. $51,700 is the amount of gift cards redeemed during the year.

8 0
2 years ago
Why do corporations merge into conglomerates
GarryVolchara [31]
To create rapid growth 

8 0
3 years ago
A laser surgical tool has a cost basis of $100,000 and a five-year depreciable life. The estimated SV of the laser is $20,000 at
VARVARA [1.3K]

Answer:

The annual depreciation under SL is $16000 per year.

Explanation:

The depreciation expense under Straight Line (SL) method remains constant throughout an asset's useful life. The depreciation under straight line method is calculated by calculating the value of the asset that is eligible for depreciation, which is its cost less the salvage value (SV) and dividing it by the asset's useful life.

The straight line depreciation per year = (Cost - SV) / estimated useful life

Annual depreciation under SL = (100000 - 20000) / 5   = $16000 per year

4 0
3 years ago
Other questions:
  • One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm
    9·1 answer
  • James is an agreeable and emotionally stable person. A _______ , he inspires his employees to believe in the changes he wants to
    9·1 answer
  • Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period
    9·1 answer
  • Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu
    13·1 answer
  • An event that took place during the "year of the environment" in 1970 is _____.
    15·1 answer
  • Select all that apply.
    10·2 answers
  • Why do companies have to study their environtment first before venturing into new businesses ?
    7·2 answers
  • Michael works as a financial advisor in a doctors office. The two organizations that Michael most likely belongs to are the..
    13·1 answer
  • a firm has a pure discount loan with face value of $75,000 that is due in six months. the assets of the firm are currently worth
    6·1 answer
  • What was one significant difference between the beginning of the great depression and the economic fallout of the covid-19 epide
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!