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butalik [34]
3 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]3 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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Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next
lora16 [44]

Answer:

$41.96

Explanation:

The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).

Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)

                                     = 4.25 x (1 + 3%)/(12.5% - 3%)

                                     = 46.08

Then value of the stock is calculated as below:

Stock intrinsic value = 3.8/(1 + 12.5%) + 4.1/(1 + 12.5%)^2 + (4.25 + 46.08)/(1 + 12.5%)^3

                                  = 41.96

6 0
3 years ago
During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were so
photoshop1234 [79]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Units manufactured= 2,400

Units sold= 2,000

Sales= $2,150,000

Manufacturing costs:

Direct materials= $960,000

Direct labor= $420,000

Variable manufacturing cost= $156,000

Fixed manufacturing cost= $288,000

Total= $1,824,000

Selling and administrative expenses:

Variable= $204,000

Fixed= $96,000

Total= $300,000

<u>Under the absorption costing, the cost of goods sold is calculated using the direct materials, direct labor, and total unitary manufacturing overhead.</u>

First, we need to calculate the cost of goods sold:

Unitary product cost= total cost/units produced

Unitary product cost= 1,824,000/2,400= $760

Now, we can determine the net operating income:

Sales= 2,150,000

COGS= (2,000*760)= (1,520,000)

Gross profit= 630,000

Total Selling and administrative expenses= (300,000)

Net operating income= 330,000

3 0
3 years ago
_____ is a preproduction service in a value chain that requires forecasts to gain customers in the value chain.
creativ13 [48]

Answer:

The answer is letter A.

Explanation:

Determining salesperson targets and incentives is a preproduction service in a value chain that requires forecasts to gain customers in the value chain.

5 0
3 years ago
Two years ago, you invested $3,000.00. Today, it is worth $3,750.00. What rate of interest did you earn?
enot [183]

The annual interest rate is 11.803%.

Assumptions:

- Interest is compounded annually.

4 0
3 years ago
The project manager has concerns about the software developer's project work in terms of quality and has spoken to the developer
Katen [24]

Available Options Are:

(A) Both focus on management responsibility, fulfillment of requirements, continuous improvement, prevention over inspection, and product excellence

(B) Both focus on management responsibility, continuous improvement, prevention over inspection, and customer satisfaction

(C) Both focus on management responsibility, fulfillment of requirements, continuous improvement, prevention over inspection, and customer satisfaction

(D) Both focus on management responsibility, continuous improvement, prevention over inspection, and product excellence

Answer:

Option B. Both focus on management responsibility, continuous improvement, prevention over inspection, and customer satisfaction

Explanation:

The quality management and the project management both are management study. Secondly, both of these focus on the improving the project quality and making it better in the every next step. Both management techniques prefer mistake prevention techniques over the continuous prevention which cost lower. These three things were common in all of the option above and are written in bold letters.

Option A is incorrect because fulfillment of requirements and product excellence is not part of project management though it is part of quality management.

Option B is correct because both project management and quality management says that customer satisfaction comes from quality output.

Option C is incorrect because fulfillment of requirements is not part of project management though it is part of quality management.

Option D is incorrect because product excellence is not part of project management though it is part of quality management.

8 0
3 years ago
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