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andrey2020 [161]
3 years ago
6

A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year.

Annual depreciation expense would be $1,500. What is the payback period for the new machine?a. 4 years.b. 6 years.c. 10.5 years.d. 14 years.e. 42 years.
Business
1 answer:
34kurt3 years ago
8 0

Answer:

b. 6 years.

Explanation:

The formula and the calculation of the payback period is presented below:

= Initial investment ÷ Net cash flow

where,  

Initial investment is $263,000

And, the net cash flow = After-tax net income + depreciation expenses

= $2,000 + $1,500

= $3,500

Now placed these values in the formula above, so the period would be equal to

= ($21,000) ÷ ($3,500)

= 6 years

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Answer:

The correct answer is Cushing's Syndrome.

Explanation:

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3 years ago
An accrediting agency’s published rules, which serve as the basis for comparative assessment during the review or survey process
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2 years ago
Techno is planning a security offering under regulation d, rule 505. under this rule, techno can
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3 years ago
Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $
bekas [8.4K]

Answer:

The cost per unit for product B is<em> $ 15 per unit</em>

Explanation:

Only Manufacturing Costs are used in Product Costing. Thus to find the Cost Per Unit of Product B, we Prepare a Manufacturing Cost Summary for Product B.

<u>Step 1 Prepare a Manufacturing Cost Summary for Product B</u>

Direct materials                                                                      $ 15,000

Direct labor                                                                             $24,000

Overhead costs($24,000/$36,000) × $54,000                   $36,000

Total Cost for Product B                                                        $75,000

<u>Step 2 Calculate the Cost Per Unit for Product B</u>

Cost Per Unit = Total Cost / Number of Units Produced

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3 0
3 years ago
Read 2 more answers
Designs by Candice is a graphic design studio specializing in logos and business stationery. Candice has just made a $69,300 inv
borishaifa [10]

Answer:

Designs by Candice

Her costs include:

Costs of materials, labor, overheads.  

Then in charging her customers she would include the profit target of $7,623 (representing 11% of her capital investment).

Explanation:

As a graphic design studio, Design by Candice would buy stationery and design materials, including 3D printers and other software.  Candice would also incur labor costs on those doing the design proper.  There are also manufacturing overheads, including rent, utilities, etc. and not to forget other indirect costs like selling and marketing and administrative expenses.

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