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stiv31 [10]
3 years ago
14

The Silverside Company is considering investing in two alternative​ projects: Project 1 Project 2 Investment ​$400,000 ​$280,000

Useful life​ (years) 5 5 Estimated annual net cash inflows for useful life ​$90,000 ​$65,000 Residual value ​$25,000 ​$12,000 Depreciation method Straight−line Straight−line Required rate of return ​10% ​6% What is the payback period for Project​ 1?
Business
1 answer:
shepuryov [24]3 years ago
4 0

Answer:

The Silverside Company

Project 1's Payback Period

= Initial Investment/Annual cash flows

= $400,000 / $90,000

= 4.44 years.

Explanation:

Project 1:

Initial Investment = $400,000

Useful life = 5 years

Annual cash inflows for useful life = $90,000

The Silverside Company's payback period calculates the time or number of years that it would take the company to recover from its initial investment in Project 1.  This is the simple payback period calculation.  There is also the discounted payback period calculation.  This method discounts the annual cash inflows to their present values before the calculation is carried out.  This second method gives a present value perspective on the issue.

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2 years ago
Which of the following is not an example of macro economics
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What’s the following?
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3 years ago
A financial analyst for Simon Manufacturing prepared the following​ report:
Zolol [24]

Answer: A.The cumulative customerminus−level operating income of the top eight customers represents about 105.1105.1​% of operating income

Explanation:

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= $17,355.70

The Cumulative total of the Operating Income is,

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3 0
4 years ago
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6 0
2 years ago
At a computer-consulting firm, the number of new clients that they have obtained each month has ranged from 0 to 6. the number o
Rudiy27

Answer:

3.05

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