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topjm [15]
3 years ago
12

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million. The investment will result

in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years. What is the payback period for this project?
Business
1 answer:
Tems11 [23]3 years ago
6 0

Answer:

The payback period for this project is 2.43 years.

Explanation:

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.

The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.

The payback period is the time it takes to cover the investment to be covered by returns.

The investment cost remaining in the first year

= $1,850,000 - $525,000

= $1,325,000

The investment cost remaining in the second year

= $1,325,000 - $812,500

= $512,500

The third year payback

= \frac{\$ 512,500}{\$ 1,200,000}

= 0.427

The total payback period

= 2.43 years

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Answer and Explanation:

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6 0
3 years ago
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Sindrei [870]

Answer:

The correct answer is drop shipper.

Explanation:

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8 0
3 years ago
Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cos
OLga [1]

Answer:

If the units are reworked, income will increase by $5,800.

Explanation:

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4 0
3 years ago
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Answer:

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3 years ago
Read 2 more answers
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