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Evgesh-ka [11]
3 years ago
9

Olinick Corporation is considering a project that would require an investment of $354,000 and would last for 8 years. The increm

ental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.):
sales 210,000
Variable expenses 22,000
Contribution Margin 188,000
Fixed expenses:
Salaries 40,000
Rents 53,000
depreciation 48,000
Total fixed expenses 141,000
Net Operating Income 47,000
The scrap value of the project's assets at the end of the project would be $30,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

3.7 years

7.5 years

4.8 years

3.5 years
Business
1 answer:
Schach [20]3 years ago
6 0

Answer:

3.7 years

Explanation:

Given that,

Initial investment = $354,000

Net income = $47,000

Depreciation = $48,000

Annual cash flow:

= Net income + Depreciation

= $47,000 + $48,000

= $95,000

Payback period:

= Initial investment ÷ Annual cash flow

= $354,000 ÷ $95,000

= 3.7 years

The payback period of the project is closest to 3.7 years.

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devlian [24]

Answer:

probability = 0.008

probability = 0.0256

Explanation:

we know here probability of defective is 0.2

so probability of not defective is 1 - 0.2 = 0.8

as we know 3 item is arrive off process line in succession

so The probability that an item is defective is

as P(defective) = 0.20

as all item are independent so

probability that all three items are defective is

probability = 0.20  × 0.20  × 0.20 = 0.008

and

probability that exactly 3 of next 4 are defective

so number of way that can choose 3 out of 4 is

= \frac{4!}{3! ( 4-3)!}

= 4

so as all are independent probability is

probability = ( the number of way to choose 3 out of 4 ) × ( 3 item defective ) × ( 1 item not defective )

probability = _4 C_3 × 0.2³ × ( 1- 0.2)

probability = 4 × 0.008 × 0.8

probability = 0.0256

4 0
3 years ago
Kelsay Corporation has provided the following contribution format income statement. Assume that the following information is wit
mario62 [17]

Answer:

the contribution margin per unit is $15 per unit

Explanation:

The computation of the contribution margin per unit is shown below:

Contribution margin per unit is

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7 0
3 years ago
A country sells more goods and services to foreign countries than it buys from them. It has Select one: a. a trade surplus and p
GREYUIT [131]

Answer:

a trade surplus and positive net exports. 

Explanation:

If a country sells more goods and services to foreign countries than it buys from them, it means the country's export is greater than its import. If export is greater than import, net exports (export- import ( would be postive.

Also, there would be a trade surplus.

 A trade surplus is when the value of export is greater than imports. 

I hope my answer helps you

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3 years ago
Improving stock prices and increasing factory production _____ why economists _____ continuing economic improvement in the next
Nata [24]

Answer: C. are, predict

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Improving stock prices and increasing factory production are why economists predict continuing economic improvement in the next quarter.

When there is an increase in the prices of stock and factory production, this can bring about an improvement in the economy as it will lead to economic growth as there will be increase in demand which ultimately leads to employment opportunities and also rise in the standard of living of the people.

3 0
2 years ago
"suppose that an angry customer started yelling at you in front of other customers. what would you do?" this type of interview q
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