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3 years ago

Compute the payback period for each of these two separate investments:

Business

2 answers:

cestrela7 [59]3 years ago

6 0

Answer:

2.2 years

3.6 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow. For this purpose we use the net cash flows to calculate the payback.

to calculate the net cash flow we need to adjust the depreciation in incremental after tax income.

Depreciation = ( $520,000 - $10,000 ) / 6 = $85,000

Add this depreciation in the depreciation in incremental after tax income.

Net Cash flow = $150,000 + $85,000 = $235,000

Payback Period = Initial Investment / Incremental net cash flow each year

Payback Period = $520,000 / $235,000 = 2.2 years

to calculate the net cash flow we need to adjust the depreciation in incremental after tax income.

Depreciation = ( $380,000 - $20,000 ) / 8 = $45,000

Add this depreciation in the depreciation in incremental after tax income.

Net Cash flow = $60,000 + $45,000 = $105,000

Payback Period = Initial Investment / Incremental net cash flow each year

Payback Period = $380,000 / $105,000 = 3.6 years

BlackZzzverrR [31]3 years ago

6 0

Answer:

The payback period is the time that a project needs to recover its initial investment.

1) initial investment = -$520,000

salvage value = $10,000

depreciation per year = $510,000 / 6 years = $85,000

incremental cash flow = $150,000 + $85,000 = $235,000

payback period = $520,000 / $235,000 = 2.212 years or 2 years, 2 months and 17 days.

2) initial investment = -$380,000

salvage value = $20,000

depreciation per year = $320,000 / 8 years = $40,000

incremental cash flow = $60,000 + $40,000 = $100,000

payback period = $380,000 / $100,000 = 3.8 years or 3 years, 9 months and 18 days.

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Long-term liabilities include

REY [17]

Answer:

some obligations payable at some date beyond the operating cycle.

Explanation:

Liabilities refer to money that a business owes to other entities. They are debts a firm acquires in its normal business operations. Liabilities are categorized as either long-term or short-term.

Long term liabilities are obligations that are not due for repayment in the current financial year. They are debts that the company is expected to pay in future financial periods. Long-term liabilities due dates are after one year and beyond. Short-term liabilities contrast long-term liabilities because the due date for the former is in the current financial year.

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3 years ago

Consider the market for cars. Which determinant of demand is affected by each of the following events? Choose from: consumer pre

yulyashka [42]

Answer:

a. consumer preferences

b. number of buyers

c. incomes

d. price of related goods

e. price of related goods

f. expectations

Explanation:

a. consumer preferences : It is characterized as the qualitative of the numerous bundles of products, as calculated by utility.

b. number of buyers : The number of buyers willing and capable to purchase goods is presumed to be continuous when building a demand curve.

c. incomes : Income is funds earned by an external party in return for the purchase of a product or service or through the expenditure of cash.

d. price of related goods : Cost and demand for the products. Fits are resources that are used together.

e. same as D.

f. expectations: A firm belief that anything is going to happen or be done in the future.

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3 years ago

According to the National Association of Colleges and Employers (NACE) survey, some of the skills that employers seek include:

rodikova [14]

Answer:

1) Problem solving skills

2) Teamwork abilities

3) Strong work ethic

4) Analytic / Quantitative Skills

Explanation:

As reported by the National Association of Colleges and Employers (NACE), during their survey on skills employers seek in candidates. They have found that the most important skills employers seek in a candidate's resume aside from a good GPA are problem-solving skills and the ability to work in a team.

Other top skills that employers want are a strong work ethic and analytical/quantitative skills. These skills were among the top six in the last year's report of NACE. While this year they have become the top four most wanted skills by an employer.

There are other skills as well that employers seek such as Communication Skills (written), Leadership, Communication Skills (Verbal), Initiative, etc. However, they are not as important as the top four skills mentioned above.

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3 years ago

Rebotar Inc, makes basketballs. Their fixed costs are $3450 Variable costs are $12 per basketball, If the basketball is priced a

worty [1.4K]

Answer:

Break-even points = 265.38

Explanation:

Given:

Fixed cost = $3,450

Variable costs = $12

Selling price = $25

Number of balls sold = 300

Find:

Break even costs

Computation:

Contribution per unit = Sales - Variable costs

Contribution per unit = $25- $12

Contribution per unit = $13

Break-even points = Fixed cost / Contribution per unit

Break-even points = $3,450 /$13

Break-even points = 265.38

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3 years ago

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare

aev [14]

Medicare tax is always payable on gross pay as Descibed below|

<u>Explanation</u>:

Note: 1

FICA Social security’s tax

FICA - social security tax is payable on maximum wages of $128,400.

Once an employee's year to date earnings or cumulative earnings exceed the wage base of $128,400, no additional Social Security tax isto be withheld from the employee's earnings.

So, before calculating the FICA - social security tax, we have to check whether the September earnings along with cumulative earnings until August is exceeding $128,400 or not .

If September earnings plus cumulative earnings until August is exceeding $ 128,400, then.

Social Security tax = [($128,400 minus Cumulative earnings until August) or gross salary whichever is lesser] into 6.20%. and if it is not, then

Social Security tax = Gross pay during September into 6.20%

Note 2

FICA minus Medicare tax

Medicare tax is always payable on gross pay. Medicare tax = Gross pay x 1.45%

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3 years ago