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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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If the capital stock ________ while the supply of labor ________, it is likely that the productivity of labor will fall.
liq [111]

If the capital stock fixed while the supply of labor increases, it is likely that the productivity of labor will fall.

<h3>What is Labor productivity?</h3>

Labor productivity is use to measure the output of a labour based on hourly basis.

Labor productivity is usually determined by the amount of Capital that is investment. This include technological and human capital.

Therefore, If the capital stock fixed while the supply of labor increases, it is likely that the productivity of labor will fall.

Learn more on productivity here,

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5 0
2 years ago
Planning for capital expenditures is necessary for all of the following reasons except:
True [87]

Answer:

The correct answer is (C)

Explanation:

Planning for capital expenditures is an important aspect which helps the organisation to grow in future and to mitigate the risks of financial distress. Amount spent on office equipment is not a part of planning for capital expenditures because in time fixed assets such as office equipment wear out or become superseded. All other reason are a part of planning for capital expenditures.

3 0
3 years ago
Which is an example of a preventative measure related to possible medical
Rama09 [41]

An example of a preventative measure related to medical identity theft would be carefully checking the medical records of a person. Option A is correct.

<h3>What is a preventative measure?</h3>

In opposition to disease treatment, preventative measures refer to actions or steps taken to ward off illness. The usual categories used to describe preventive care strategies are primary, secondary, and tertiary prevention.

Maintaining control of medical identity cards and routinely reviewing medical bills, credit reports, medical benefit accounts, and instruction invoices are examples of preventative measure.

Medicare and Social Security cards that have been stolen away require to be accounted right away to the Social Security Administration.

Therefore, option A is correct.

Learn more about a preventative measure, refer to:

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7 0
2 years ago
According to the video, what are the goals of window displays? check all that apply.
Harlamova29_29 [7]

Answer:

a and c

Explanation:

8 0
2 years ago
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The town of Millbridge has just agreed to pay a pension for the town clerk. The pension will be $40,000 per year for the next 20
Mekhanik [1.2K]

The amount that must be put aside now is $458,796.85.

<h3>How much should be put aside now?</h3>

The first step is to determine the future value of the annuity:

Future value = yearly payment x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • r = interest rate = 6%
  • n = number of years = 20

$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65

Now, determine the present value of this amount:  $1,471,423.65 / (1.06^20) =$458,796.85

To learn more about present value, please check: brainly.com/question/26537392

4 0
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