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butalik [34]
2 years ago
10

A company is considering two capital investments. Each requires an initial investment of $15,000 and has a 4 year useful life. I

nvestment A has expected cash inflows of $5,000 each year for the 4 years for total cash inflows of $20,000. Investment B has the following expected cash flows: Year 1: $8,000; Year 2: $6,000; Year 3: $4,000; Year 4: $2,000; Total cash flows: $20,000. Calculate the payback period for Investment A.
Business
1 answer:
yaroslaw [1]2 years ago
7 0

Answer:

3 years

Explanation:

The computation of the payback period is shown below:

Payback period = Initial investment ÷ Net cash flow

where,  

Initial investment is $15,000

And, the net cash flow would be

= Year 1 + year 2 + year 3 + year 4

= $5,000 + $5,000 + $5,000 + $5,000

= $20,000

As we see that the net cash flow is recovered in three years that means net cash flows and the initial investment are equal

So,

Payback period would be

= $15,000 ÷ $15,000

= 3 years

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Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,0
pentagon [3]

Answer:

Accounting profit = $45,000

Economic profit = $5,000

Explanation:

The computation of accounting profit and economic profit is shown below:-

Accounting profit = Sales - External expenses

= $75,000 - $30,000

= $45,000

Economic profit = Accounting profit - Implicit cost

= $45,000 - $40,000

= $5,000

Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive

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2 years ago
Following are Nintendo's revenue and expense accounts for a recent calendar year.Net sales ¥ 1,014,345 Cost of sales 626,379 Adv
elena-14-01-66 [18.8K]

Answer: These transactions can be journalized as follows :-

Explanation: Since the entries are closing entries these would be recorded at year end :-

Dec 31.  Sales a/c Dr  ¥ 1,014,345

                 To income a/c ¥ 1,014,345

         (Being revenue account closed)

Dec 31.  Income a/c Dr  ¥ 936,724

                 To cost of sales a/c  ¥626,379

                 To advertising expense a/c ¥ 96,359

                 To other expense a/c  ¥213,986

         (Being expenses account closed)

Dec 31.  Income a/c Dr  ¥77,621

                  To retained earnings ¥77,621

          (Being excess income transferred)

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2 years ago
Which student best fills the role of group notetaker? Yuna, who is positive and considers other viewpoints Hiroto, who is focuse
Juliette [100K]
Sora is the best group note taker; she meets are the criteria.
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3 years ago
we can use different parts of alandscape to represent different stages of its evolution this strategy is called trading location
LuckyWell [14K]

We can use different parts of a landscape to represent different stages of its evolution this strategy is called trading location for <u>time</u>

<u></u>

<h3>Definition of evolution</h3>

The term "evolution" is one that most of us first hear in a science class, although the idea has application in a variety of fields, including biology, technology, and behavior.

When we discuss business evolution, we're talking about adapting to market dynamics, client demand, and evolving technologies to assure relevance and advancement.

According to Paul Salnikow, who makes this argument, "We have seen the rise of shifts in business habits, with global travel, The emergence of the internet, and really global communication. People now view marketplaces on a regional or even global level rather than as a country or city, and in order to reach their markets, they relocate.

Learn more about evolution

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3 0
1 year ago
A company's decision to move its operations out of the country will affect its employees, owners, suppliers, distributors, and e
kykrilka [37]

Answer:

The above statement is true .

Explanation:

It is true , when a company take decision to move its operations out of the country it will affect its employees , owners , suppliers , distributors , even its customers .

It is because, when company move out , the employees working in it loss their jobs . They become jobless. The suppliers loss their customer. The distributor also loss their customer. The customer may like the product of the company and if the company moves out then they do not get their product which they like. The owner may also suffer loss,as its possible that the product do not gain popularity anywhere else . The company may loss its share. It also effect the economy , as a good earning company always serves to a country .

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