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Westkost [7]
3 years ago
10

Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of 5 years and no sa

lvage value. The machine will increase Major’s after-tax cash flow by $2,000 annually for 5 years. Major uses the straight-line method of depreciation and has an incremental borrowing rate of 10%. The present value factors for 10% are as follows:Using the payback method, how many years will it take to pay back Major’s initial investment in the machine?
Business
1 answer:
Yuri [45]3 years ago
3 0

Answer:

2.5 years

Explanation:

The payback method calculates how many years it will take the company to recover the investment's cost without considering any discount rate. The formula sued to calculate the payback period is:

payback period = investment cost / annual cash flow

payback period = $5,000 / $2,000 = 2.5

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unique selling propositions

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Artist 52 [7]

Answer:

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7 0
2 years ago
A marketing company wants to estimate the proportion of consumers in a certain region of the country who would react favorably t
Sindrei [870]

The closest to the minimum number of consumers needed to obtain the estimate with the desired precision is (b) 271

Explanation:

When the prior estimate of population proportion is not given , then the formula to find the sample size is given by :-

n=0.25(\frac{z^{*} }{E} )^{2}

where E = Margin of error.

z* = Critical z-value.

As per given , we have

E = 5%=0.05

Confidence level = 90%

The critical value of z at 90% is 1.645  (By z-table)

Put all values in the formula , we get

n=0.25(1.645/0.05)²

n=0.25(32.9)²

n=270.6025≈271

Thus, the minimum sample size needed = 271

Hence , the correct answer is 271 .

8 0
3 years ago
What is the relationship between financial system and economy
pentagon [3]

Answer:

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2 years ago
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Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary.
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Answer with Explanation:

Following are some types of account investments that are better for emergency funds and the return on these investment varies depending upon the risk born by the investors:

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If the inflation rate is below the return paid on the current account then it could be a better investment option as the money doesn't loose its value over time.

If the inflation rate is higher than the return paid on the current account then it is better to invest in commodities like gold, petroleum products, etc, that are often termed as speculative investments.

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