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
On the food label for a package of crackers, what does a 15 percent daily value for iron mean?
Tanya [424]
A 15% percent daily value for iron means that one serving of the cracker provides 15 percent of the iron that the average person needs each day.
The Daily Value or the DVs for short is an indicator that shows information about the nutrient that can be provided in one serving of the food for an average person. The average person is a healthy adult who consumes exactly 2000 calories a day which became an indicator basis for The Daily Value<span>.</span>
6 0
3 years ago
Read 2 more answers
Acme Home Builders, Inc., has build 24 houses so far this year at a total cost to the company of $4.80 million. If the company b
Dmitry_Shevchenko [17]

Answer:

25th house's Marginal cost is $250,000.

Explanation:

Given:

Total cost of 24 houses = $4,800,000

Total cost of 25 houses = $5,050,000

Marginal cost = ?

Computation of marginal cost:

Marginal cost = Change in total cost

Marginal cost = Total cost of 25 houses - Total cost of 24 houses

Marginal cost = $5,050,000 - $4,800,000

Marginal cost = $250,000

So, we say that 25th house's marginal cost will be $250,000 .

5 0
3 years ago
Punch Corporation acquired 80% ownership of Jud Corporation in 2017, at underlying book value. On that date, the fair value of n
Ilia_Sergeevich [38]

Answer:

The amount of consolidated net income that will be assigned to the controlling interest for 2018 is $ 48,000.

Explanation:

In order to calculate consolidated net income profit and loss on intra group transactions are eliminated or not taken into account. So in order to calculate profit cost incurred by group is taken as cost of good sold and sales that is made to third party will be taken as revenue. Detail calculations are given below.

Revenue           $ 100,000

COGS               ($   40,000)      (50,000 *80%)

Profit                 $   60,000-A

Consolidated net income controlling interest = A * 80% = $ 48,000

6 0
3 years ago
Suppose 20.0 g pieces of gold and iron, both initially at 100oC, are added to different containers of water, both initially at 2
Sauron [17]

Answer:

  • The final temperature in the container with Gold is 27.49 ⁰C
  • The final temperature in the container with Iron is  33.01  ⁰C

Therefore, the highest final temperature is obtained in the container with Iron.

Explanation:

Q = mcΔT

Where;

Q is the quantity of heat gained or lost

m is the mass of the metals or water

c is the specific heat capacity

ΔT is the change in temperature, T₂ - T₁

T₂  is the final temperature and T₁ is the initial temperature

Heat lost by metals at 100°C is equal to heat gained by water at 25°C

-Q_{metal} = Q_{water}

-Q_{Au} = Q_{H_2O} \\-Q_{Fe}  = Q_{H_2O}

Specific heat capacity of water = 4.18 J/g°C

Specific heat capacity of gold = 0.129 J/g°C

Specific heat capacity of iron  = 0.45 J/g°C

⇒For Gold

-20*0.129*(T₂ - 100) = 18*4.18 (T₂ - 25)

-2.58T₂ +258 = 75.24T₂  - 1881

77.82T₂  = 2139

T₂  = 2139/77.82

T₂ = 27.49 ⁰C

⇒For Iron

-20*0.450*(T₂ - 100) = 18*4.18 (T₂  - 25)

-9T₂  +900 = 75.24T₂ - 1881

84.24T₂ = 2781

T₂  = 2781/84.24

T₂ = 33.01  ⁰C

Therefore, the highest final temperature is obtained in the container with Iron.

5 0
3 years ago
Shawn Bixby borrowed $21,000 on a 120-day, 12% note. After 70 days, Shawn paid $2,400 on the note. On day 100, Shawn paid an add
Zarrin [17]

Answer:

Ending Balance Due = $14,980.106

Total Interest = $780.106

Explanation:

solution

Total Interest and Ending balance due by the U.S. Rule are as given below

so interest is here for 70 day with 12 % of 21000

interest = 0.12 × 21000 ×  \frac{70}{360}

interest = $490

so

payment = $2400 - $490

payment = $1,910

and adjusted balance  will be after that

adjusted balance  = $21,000 - $1,910

adjusted balance  = $19,090

and

on 100 day

Interest  =  0.12 × $19,090  ×  \frac{30}{360}

Interest  =  $190.9

and

Payment  = $4,400 - $190.9

payment = $4209.1

So

adjusted balance  = $19090  - $4209.1

adjusted balance  = $14,880.9

and interest = $14,880.9 × 0.12  ×  \frac{20}{360}

interest = $99.206

so Ending Balance Due  will be

Ending Balance Due = $14,880.9 + $99.206

Ending Balance Due = $14,980.106

and

Total Interest = $490 + $190.9 + $99.206

Total Interest = $780.106

5 0
3 years ago
Other questions:
  • If _________ is constrained, we should __________ the staffing level to lower capacity.
    8·1 answer
  • Ronnie, the advertising manager of a leading newspaper, congratulates every member of the space selling team who achieves his or
    5·2 answers
  • A certificate or token that represents a fixed quanity of commodity is called
    8·1 answer
  • Brenda likes to download her music from a(n ____ site and then transfer it to her portable digital media player so that she can
    5·1 answer
  • Nico is saving money for his college education. He invests some money at 99​%, and ​$17001700 less than that amount at 4 %.4%. T
    12·1 answer
  • QUESTION 31 Denzil was one of 50,000 people defrauded of $40 in an advertising scam. His best course of action to recover his mo
    9·1 answer
  • Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.7 percent, a YTM of 7.7 percent, and has 14
    9·1 answer
  • The demand curve intersects the natural monopolist's long-run average total cost curve at a point where long-run average total c
    5·1 answer
  • Assume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that cost $65,300 under terms of
    6·1 answer
  • In a bill-and-hold arrangement, revenue only can be recognized after the sale of the goods to the end user.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!