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telo118 [61]
2 years ago
10

The management of L Corporation is considering a project that would require an investment of $223,000 and would last for 6 years

. The annual net operating income from the project would be $107,000, which includes depreciation of $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):.
Business
1 answer:
Nina [5.8K]2 years ago
7 0

Answer:

Payback period = 1.813 years

Explanation:

If a project has equal annual cash-flows, the payback period can be  calculated using the formula:

Payback=\frac{CostOfMachine}{AnnualCashflows}

The  annual cash-flow figure that is to be used in this calculation should not include depreciation as depreciation is a non-cash item. Net operating income from the project would be $107,000 and to get to annual cash-flows, depreciation should be added back.

Annual cash-flows would therefore be $107,000

AnnualCashflows=107,000+16,000=123,000

As such:

Payback=\frac{223,000}{123,000}= 1.813years

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What are the 4 steps to branding? How could we relate this to the scientific method?
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Answer:

•Define how you want to be perceived

•Organize your business based on this promise

•Communicate your promise

•Be consistent

( I don't know what is the answer on your second question, sorry! :< )

6 0
3 years ago
Fundamental analysis determines that the price of a firm's stock is too low, given its intrinsic value. The information used in
Allisa [31]

Answer:

The correct answer is letter "B": Neglected-firm effect.

Explanation:

The Neglected-firm effect has the purpose to explain why small companies that are not well-known have better performances than the ones that are. The theory explains that smaller companies' stocks generate higher returns because they are unlikely to be studied by market analysis. In that sense, because no much information is provided by the smaller firms -even lesser than what is required by law, they are <em>neglected </em>by analysts since there are very few data to take a look at.

8 0
2 years ago
In the short run, an increase in the aggregate price level caused by a shift in the aggregate demand curve first causes:
ra1l [238]

Answer: b. movement along SRAS

Explanation:

When the price level changes due to an increase in the demand that forces the Aggregate demand curve to shift rightward, the immediate effect would be that the Aggregate demand curve would intersect the Short Run Aggregate supply at a new point.

This new point will see a movement <em>along </em>the SRAS from its previous equilibrium point to the new equilibrium intersection point with the AD curve. In other words, the new point will be on the same SRAS curve just moving from one point to another.

6 0
2 years ago
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $14,000 indica
Readme [11.4K]

Answer:

Department Y $9000

Department Z $5000

Explanation:

Delivery expense can be calculated using the allocation and apportionment method for Y and Z.

<u>Step 1. Allocation</u>

The costs that are directly attributable to the departments would be allocated to its relevant department. Here, $1500 are the direct expenses for the deliveries for the department Y, so at the first step,

Department Y Cost = $1500

For the department Z, their are no direct expenses for the deliveries,so at the first step,

Department Z Cost = $0

<u>Step 1. Apportionment</u>

The indirect cost of $12500 ($14000 - $1500) would be apportioned among department Y and Z.

So

Department Y = $1500 + $12500 x 60% = $9000

Department Z = $12500 x 40% = $5000

3 0
3 years ago
Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is ava
o-na [289]

Answer: Cost per unit $15.2, cost of good sold $10,640

Explanation:

Weighted Average cost per unit = 15,200/1000

= $15.2

Ending inventory (400 × 15.2)

= 6,080

Cost of good available for sale = 15,200

Cost of good sold (700 × 15.2)

= $10,640

8 0
3 years ago
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