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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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mrs_skeptik [129]

Answer:

$277,000

Explanation:

Break even is the point where neither profit nor a loss is made by the company.

<u>Determination of Break-even Sales</u>

Sales - Variable Expenses - Fixed Expenses = 0

Therefore, Solving Algebraically

Sales = Variable Expenses + Fixed Expenses

         = 222,000 + 55,000

         = 277,000

Therefore Break-even sales for the month for the company is closest to $277,000

5 0
3 years ago
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aalyn [17]

Answer:

to provide honest and realistic recommendations and conclusions in the execution of one's duties

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6 0
3 years ago
The United States will import 3 million CDminusRom drives if​ ________ tax per CDminusRom drive is levied on imported CDminusRom
Brums [2.3K]

Answer:

A. no

Explanation:

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8 0
2 years ago
What are the implications in formal communication to managers at a workplace
Nimfa-mama [501]

Formal communication ensures a proper channel of information flow between the superior and their corresponding subordinates. This results in a clear establishment of line of authority and workflow. Making responsibilities clear for subordinates is very efficient in this form of communication.

7 0
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Smart Manufacturing budgeted costs for 50,000 linear feet of block are: Fixed manufacturing costs $24,000 per month Variable man
Gekata [30.6K]

Answer:

$664,000

Explanation:

The computation of the budgeted total manufacturing cost is shown below:

Budgeted total manufacturing costs is

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We simply added the fixed cost and the variable cost so that the total budgeted manufacturing cost could come

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2 years ago
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