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diamong [38]
3 years ago
12

Omaha Plating Corporation is considering purchasing a machine for $1,500,000. The machine is expected to generate a constant aft

er-tax income of $100,000 per year for 15 years. The firm will use straight-line (SL) depreciation for the new machine over 10 years with no residual value. What is the payback period for the new machine?
Business
1 answer:
RoseWind [281]3 years ago
5 0

Answer:

The payback period for the new machine is 6 years.

Explanation:

depreciation = $1,500,000/10

                     = $150,000

payback period = ($100,000 + $150,000)/$1,500,000

                           = 6 years

Therefore, The payback period for the new machine is 6 years.

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Consumer protection laws are meant to:
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3 years ago
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While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some-immediately. By
Alenkasestr [34]

Answer:

an impulse product

Explanation:

When we talk about impulse products we are referring to products that people generally buy on impulse reactions. Generally in a supermarket the aisle just before the cash register is full of candy, chocolates, or other impulse products. Generally impulse products are not expensive so people usually don't think a lot about whether they will buy them or not, they just do it.

6 0
3 years ago
Exercise 177 Kirk Company issued a $3,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at D
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Answer:

The annual installment payment consists of both interest payments and principal repayment.

The interest is based on the remaining balance which is $3,500,000 in this instance:

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a.

Date                  Account Titles and Explanation        Debit                 Credit

Dec, 31 2020   Cash                                                   $569,609

                         Mortgage Payment                                                    $569,609

Date                  Account Titles and Explanation           Debit             Credit

Dec, 31 2021     Interest Expense                                $350,000

                           Mortgage Payable                              $219,509

                           Cash                                                                             $569,609

7 0
3 years ago
Which of the following statements is correct?
leonid [27]

Answer:

B

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Stock which has appreciated in value must be sold before it is considered part of gross income.

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