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
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

You might be interested in
How does recycling help bridge the gap between renewable and nonrenewable resources?
jasenka [17]
An item that is recycled requires less energy than the disposal and manufacture of a new item. As a result, it can limit the waste of nonrenewable resources such as fossil fuels. More efficient use of nonrenewable resources increase their lifetime reserves, making them more comparable in logetivity to renewable resources.
6 0
3 years ago
Under which set of circumstances would it not be appropriate to assume the value the noncontrolling shares is the same as the co
BaLLatris [955]

Answer:

The correct answer is C

Explanation:

NCI stands for the Non-controlling interest which also called as the minority interest, it is defined as the position of ownership where the shareholder owns outstanding shares that is less than 50% and has no control on the  decisions.

Under the situation where the active prices for the shares are not acquired by the acquirer states a different value, it is not appropriate to assume the value of the non-controlling shares same as of the controlling shares.

7 0
2 years ago
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would:
Svet_ta [14]

Answer:

The correct answer is letter "C": be a straight line.

Explanation:

The Production Possibility Frontier (<em>PPF</em>) aims to determine what the maximum production would be using finite factors. Typically, the higher production of a good implies lowering the production of another. The PPF is represented by a graph with a vertical "X" axis and a horizontal "Y" axis for easiness in understanding.

Thus, if the factors for production were perfectly adaptable, the PPF curve will display a straight line in a graph.

8 0
2 years ago
In a planned economy, prices of commodities are controlled by _________.
GalinKa [24]

The correct answer is C. The government

Explanation:

The key feature of a planned economy is the strong influence and control of government in the economy. Indeed, in a planned economy it is the government the entity that decides on trade and production, this includes the prices of goods and the types of products that should be manufactured. Moreover, this does not occur in market economies because in these customers, produces and the law of supply/demand determine factors of the economy. According to this, in a planned economy prices are controlled by government.

4 0
3 years ago
If a firm goes out of business because of negative economic​ profits, its books
Rainbow [258]

Answer:

The answer is B.

Explanation:

8 0
3 years ago
Other questions:
  • Consider mandy’s decision to go to college. if she goes to college, she will spend $20,000 on tuition, $10,000 on room and board
    8·1 answer
  • When one group controls an industry or market by being the only provider, this is called _____.
    12·1 answer
  • Where would the HIGHEST air pressure be measured
    15·1 answer
  • Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.
    9·2 answers
  • Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 15,000 parts in stock
    15·1 answer
  • Speculative investments are high-risk investments with the possibility of high returns in a short period of time.
    15·2 answers
  • Determine which of the items below would show up on a monthly bank statement. (Check all that apply.)
    13·1 answer
  • davis corporation is preparing its manufacturing overhead budget for the fourth quarter of the year the budgeted variable manufa
    12·1 answer
  • Maria is a recruiter with a bachelor's degree in business administration. She is well respected among her peers for her professi
    10·1 answer
  • situation: flavio's organic construction company built a commercial building of entirely plant-based materials. unfortunately, t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!