Answer:
6.75 years
No
Explanation:
The payback period calculates how long it takes to recover the amount invested in a project.
Explanations on how the payback period is calculated can be found in the attached image.
If the cash flow of the last year was increased , it won't affect the payback period because the amount invested has already been recovered between the 6th and 7th year. Therefore, the last cash flow won't be used in calculating the payback period.
I hope my answer helps you
Any value given up from the best alternative is called the : opportunity cost
Example of an opportunity cost is the amount of money you could save from your decision of going to your parents house by plane compared to going there by bus
hope this helps
Answer:
The ending cash account balance for Apricot Inc is $8,297.
Explanation:
There are three components in the statement of cash flows:
- Operating activities - Here, non-cash items applied to deriving the net income based on the accrual basis are adjusted for. Also, the movement in working capital and liabilities are accounted for.
- Investing activities encompass the assets purchased to generate the net income.
- Financing activities: These include activities that are geared towards improving the capital structure of the organization.
In deriving the cash flows at the end of the period, the balances in the activities above are added up, either outflow or inflow. Then the addition is added to the beginning balance of cash flows. This is done below.
Net cash flow provided by operating activities $45,042
Net cash flow used in investing activities ($20,831)
Net cash flow used in financing activities ($27,997)
Beginning cash account balance $12,083
Ending cash account balance $8,297