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
Exercise 18-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $31
photoshop1234 [79]

Answer:

The unit sales to earn the target income is 9,000 units

Explanation:

Annual income=Total sales-total expenses

where;

Annual income=$1,550,000

Total sales=Cost per unit sales×number of units sold (n)=(310×n)=310 n

Total expenses=Variable cost+annual fixed cost

Total expenses=(248×n)+992,000

Total expenses=248 n+992,000

Replacing;

1,550,000=310 n-(248 n+992,000)

1,550,000=310 n-248 n-992,000

310 n-248 n=1,550,000-992,000

62 n=558,000

n=558,000/62

n=$9,000

The unit sales to earn the target income is 9,000 units

3 0
3 years ago
can someone check how many ti i k t o k followers i have alexaasalvatore if u actually searh it ill give brainiest
tekilochka [14]
6034 followers currently
7 0
3 years ago
What percentage of greek students would participate in a hazing activity, even if it made them uncomfortable?
pogonyaev

Less than 10% is the percentage of Greek students that would participate in a hazing activity, even if it made them uncomfortable. This percentage is justifiable because student participation in hazing activities is prohibited and the accompanying danger to physical and mental health induced to a student is one factor that makes it more off-putting.

4 0
3 years ago
Partner Industries sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when antici
Vera_Pavlovna [14]

Answer:

b. $20.

Explanation:

Regardless of what the break-even volume is, at this volume profits are zero.

This means that any unit sold beyond this point will provide a profit equivalent to its marginal benefit, which is its selling price subtracted by its variable cost.

If a product sells for $50 and has a variable cost of $30, by selling one unit in excess of its break-even volume, the profit will be:

P= \$50-\$30 =\$20

The profit will be $20.

8 0
3 years ago
Settings alzania produces and consumes​ 500,000 tons of cotton during a year. Reports indicate that​ alzania's neighbor, which a
UkoKoshka [18]

Answer: C- Alzania's neighbor exported half its production of cotton that year

Explanation: Alzania produces and consumes​ 500,000 tons of cotton during a year. While, the neighbor which also employs the same number of people in the cotton​ industry, consumed​ 400,000 tons of cotton. There is no information on production of the neighbor. Just by looking at the consumption units we can argue that Alzania has an absolute advantage over the neighbor as it consumes more. However, if there is any information on the amount of exports of cotton from the neighbor then it will weaken the absolute advantage conclusion.

Thus, if <em>Alzania's neighbor exported half its production of cotton that year </em>the total production of cotton is greater of the neighbor than Alzania.

6 0
3 years ago
Other questions:
  • Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows tells you
    14·1 answer
  • Cindy Medavoy will invest $7,990 a year for 19 years in a fund that will earn 10% annual interest. Click here to view factor tab
    14·1 answer
  • The focus of management accounting is onA) tax preparation.B) external reporting.C) internal reporting.D) auditing.
    5·1 answer
  • Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a
    14·1 answer
  • Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summ
    5·1 answer
  • One project has three cash flows: att0, the initial investment cost is $150; att1, theproject pays $121; att2, the project needs
    8·1 answer
  • Economic fine-tuning is the (usually frequent) use of Group of answer choices fiscal policy that both balances the budget and co
    10·1 answer
  • Marbry Corporation's balance sheet and income statement appear below.
    5·1 answer
  • QUESTION 1 of 10: You are considering leasing a store site that has 1,200 square feet. The landlord is asking for a rent of $65
    6·1 answer
  • Within her company, nadine utilizes a management style that varies according to the individual and environmental situation, with
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!