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Rom4ik [11]
3 years ago
5

Exercise 16-12 Determining the payback period LO 16-4 Fanning Airline Company is considering expanding its territory. The compan

y has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $23,100,000; it will enable the company to increase its annual cash inflow by $6,600,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $32,000,000; it will enable the company to increase annual cash flow by $8,000,000 per year. This plane has an eight-year useful life and a zero salvage value. Required Determine the payback period for each investment alternative and identify the alternative Fanning should accept if the decision is based on the payback approach. (Round your answers to 1 decimal place.)
Business
1 answer:
neonofarm [45]3 years ago
5 0

Answer:

First plane = 3.5 years

Second plane = 4 years

The first plane should be chosen.

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback period = Cost/ annual cash flows

For the first plane: $23,100,000 / 6,600,000 = 3.5 years

For the second plane = $32,000,000 / $8.000,000 = 4 years

Using the cash payback period, the plane with the shorter payback period would be chosen. So the first plane would be chosen.

I hope my answer helps you

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elixir [45]

Answer:

c.a decrease in quantity demanded of poultry and an increase in the demand for fish.

Explanation:

The law of demand states that the higher the price , the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Following from the law of demand, if the price of poultry increases, the quantity of poultry demanded would fall.

Because fish and poultry are subsituites goods, if the price of poultry increases, the demand for fish would increase.

I hope my answer helps you.

6 0
3 years ago
Freight-in and purchase returns and allowance are not deducted from purchases to determine the net delivered cost of purchases.
AysviL [449]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.

The statement "<span>Freight-in and purchase returns and allowance are not deducted from purchases to determine the net delivered cost of purchases. " is true </span>
7 0
3 years ago
A(n) ____ might be represented with a single-valued attribute. Group of answer choices person’s phone number(s) person's driver'
kolezko [41]

Answer:

person's driver's license number

Explanation:

A single valued attribute means that a person or a thing can only have a single value for that attribute, for example, you can have only one social security number since having more than one is illegal.

Following the same logic, you could only have one driver's license number, since you can only have one license.

But you can have more than one cellphone, you can also have more than one car, and finally you may have attended more than one college.

4 0
3 years ago
Shockglass Company had a beginning inventory of $15,000. During the year, the company recorded inventory purchases of $45,000 an
Otrada [13]

Answer:

A. $10,000

Explanation:

We know that :

cost of goods sold = opening inventory + purchases - ending inventory

hence,

Ending Inventory = opening inventory + purchases - cost of goods sold

therefore,

Ending Inventory = $15,000 +  $45,000 - $50,000

                              = $10,000

The ending inventory must equal: $10,000

8 0
3 years ago
A________is a form of organisation in which the owner maintains complete control over the business and is personally liable for
Ainat [17]

Answer:

Sole Proprietorship

Explanation:

Sole proprietorships own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts.

6 0
2 years ago
Read 2 more answers
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