Answer:
Chiquita makes an economic profit of $250,000.
Answer:
a. 2.23
b. 3.21
Explanation:
a. Answer to Part A
Payback Period = Investment / Annual Cash Inflow
= 250000 / 112115
= 2.23
Answer to Part B
Payback Period = Investment / Annual Cash Inflow
= 200000 / 62375
= 3.21
Working Note
<em>Particulars Case A Case B
</em>
After Tax Income 72115 39000
Add: Depreciation 40000 23375
Cash Inflow 11,2115 62375
<em>Particulars Case A Case B
</em>
Cost of Machine 250000 200000
Less: salvage Value 10000 13000
Depreciable Value 240000 187000
Life of the Asset 6 8
Annual Depreciation 40000 23375
That is true because has most likely asked for higher than the offer.
I think its true...........................
A solvency ratio. It measures the income or operates success of an enterprise for a given period of time.
