1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rewona [7]
3 years ago
11

If the company is using the payback period method and it requires a payback of three years or less, which project(s) should be s

elected?

Business
1 answer:
algol [13]3 years ago
7 0

Answer: Project X

Explanation:

The Payback period is the amount of time it would take for the cash inflows accruing from an investment to payoff the cost of the investment.

Project X has a constant cashflow of $24,000 for 3 years and a cost of $68,000 for the Payback period is;

= 68,000/24,000

= 2.83 years

Project Y has an uneven cash flow with a cost of $60,000. Payback is calculated as;

= Year before payback + Amount left to be paid/cashflow in year of payback

Year before payback = 4,000 + 26,000 + 26,000

= $56,000

This means that the third year is the year before payback.

60,000 - 56,000 = $4,000

Payback period = 3 + 4,000/20,000

= 3.2 years

Based on a Payback period of 3 years, only Project X should be chosen as it pays back in less than 3 years.

You might be interested in
A competitive strategy to be the low-cost provider in an industry typically does not work well when:_______
sesenic [268]

Answer:

The Correct answer is A

Explanation:

Strategy of low cost is the kind of the pricing strategy, in which the business or organization, offers or provide the products or services at low price. This strategy helps in stimulating the demand as well as gain or acquire the higher market share.

So, the strategy which is competitive and also  the low cost provider in the industry work well when:

1. Newcomers in the industry uses at the introductory stage, the low prices so that could attract the buyers.

2. The competition on the price between the rivals sellers is vigorous.

3. The buyer also incur the low costs while switching the purchases from seller to another seller.

4. The product which are commodity grounded prevail as well as has minimal differentiation.

5 0
3 years ago
Read 2 more answers
There are very few, if any, good substitutes for motor oil. therefore, the
Alina [70]
<span>the demand for motor oil would tend to be price inelastic.</span>
6 0
3 years ago
Colleen and Judy purchased a dilapidated townhome in an estate sale. Due to their fix-up work and the current economy, the prope
liq [111]

Answer:

The correct answer is The covenant of warranty.

Explanation:

It is said that in this type of pact a public and peaceful possession must be written, which can be exercised so that it can be known by society. The possession of the property must be declared as continuous (that is, there can be no claim by the owner or the property is lost), and must be exercised as the legitimate owner before third parties.

5 0
3 years ago
Identify which principle applies to each scenario by placing the appropriate label next to each scenario.
tatyana61 [14]
<span>Each scenario refers to some label. The labels are placed with a different order. We need to arrange them by checking the possibilities. Labels most probably matches with one scenario each or it can be many. If labels are less in numbers than the scenarios then it can be matched with multiple scenarios.</span>
6 0
3 years ago
Andrew sold IBM stock to his sister Susan for $6,000. Andrew purchased the stock two years ago for $8,000. Susan sold the stock
klasskru [66]

Answer:

c. $1,300 gain

Explanation:

In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.

$7,300 - $6,000 = $1,300

6 0
3 years ago
Other questions:
  • How does a traditional adversarial relationship with suppliers change when a firm decides to move to a few suppliers
    10·1 answer
  • Social class is a strong predictor of purchases that have symbolic aspects, but low to moderate prices. What is the best example
    10·1 answer
  • A year ago, the engineering team at a company got a new boss to oversee the them. Things were fine at first, but a few months in
    11·1 answer
  • Erkkila Inc. reports that at an activity level of 6,600 machine-hours in a month, its total variable inspection cost is $423,980
    13·1 answer
  • Antonia runs her own business as a cabinetmaker. What benefit and what drawback does her sole proprietorship entail?. . Control
    5·1 answer
  • Which of the following is true with regard to use of individuals and teams? A. Teams and individuals can be used interchangeably
    7·2 answers
  • . Jeff works as a computer repair technician. He has money in a savings account and he owns some stock. What types of income doe
    6·1 answer
  • Explain why a cinder cone volcano has steep sides
    5·1 answer
  • In Rovamia, a developing country, companies often had to compromise on quality and cost earlier to make their products affordabl
    7·1 answer
  • QUESTION 1 of 10: According to the reading, this is the first step in market research:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!