1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Liono4ka [1.6K]
3 years ago
13

Bark Company is considering buying a machine for $240,000 with an estimated life of ten years and no salvage value. The straight

-line method of depreciation will be used. The machine is expected to generate net income of $6,000 each year. The cash payback period on this investment is:
a. 20 years
b. 10 years
c. 8 years
d. 4 years
Business
1 answer:
cupoosta [38]3 years ago
3 0

Answer:

option (c) 8 years

Explanation:

Data provided in the question:

Cost of the machine = $240,000

Useful life = 10 years

Salvage value = 0

Net income = $6,000 each year

Now,

Using the straight-line method of depreciation

Annual depreciation = [ Cost - Salvage value ] ÷ Useful life

= [ $240,000 - 0 ] ÷ 10

= $24,000

Thus,

Cash flow = $6,000 + $24,000

= $30,000

Therefore,

The payback period = ( Cost ) ÷ ( Cash flow )

= $240,000 ÷ $30,000

= 8 years

Hence,

the correct answer is option (c) 8 years

You might be interested in
McLeod Inc. is considering an investment that has an expected return of 8% and a standard deviation of 10%. What is the investme
Rudik [331]

Answer:

the investment's coefficient of variation is 1.25.

Explanation:

The  coefficient of variation relates the units of return to the units of risk. It expresses the unit of risk per 1% of return as follows :

<em>Coefficient of Variation = Standard Deviation ÷ Return</em>

Therefore,

Coefficient of Variation = 10 ÷ 8

                                       = 1.25

7 0
3 years ago
In the experiment described in the passage, noumenon corporation was trying to determine the price that
sattari [20]
<span>The corporation was trying to determine the price that would bring in the most money.
The pricing of the product will be determined by several main factors such as the total cost to create the products , the situation with competitors, the rarity of the products,  and the predicted average earnings that their target consumers had,</span>
7 0
4 years ago
how could Government intervention to minimise affects of lack of demand in the tourism and international education sector of Aus
BlackZzzverrR [31]

<u>Explanation:</u>

The government reduces regulations on tourism activities. Tourism related companies are encouraged to establish their business in a better way by reducing the interest rates for these business. The government also funds tourism related activities such as trade events. funding is also provided for events, concerts, festivals and permanent visitor attractions that can be set.

To develop the international education sector Australian government has kept the education sectors open for business.Global networking is done by government to take international students and provide education facilities.

8 0
3 years ago
During July at Pool Company, $65,000 of raw materials were requisitioned from the storeroom for use in production. These raw mat
QveST [7]

Answer:

$4,000

Explanation:

Preparation of the journal entry.

Based on the information given we were told that The indirect materials totaled the amount of $4,000 which means that the appropriate journal entry to record this requisition would include a DEBIT TO MANUFACTURING OVERHEAD of the amount of $4,000.

(To record requisition)

6 0
3 years ago
A society whose economic system is engaged in the processing and control of information is called a(n):
ss7ja [257]
Postindustrial society
7 0
3 years ago
Other questions:
  • Roadside Markets has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What
    6·1 answer
  • Clement applies for a home loan at Global Bank Inc. As part of the process, he provides his personal details to the banker who i
    11·1 answer
  • Tell me about a time when you decided to sacrifice short-term gain for long term-success for your company?
    7·1 answer
  • George's T-Shirt Shop produces 8,000 custom-printed T-shirts per month. George's fixed costs are $24,000 per month. The marginal
    5·1 answer
  • ​When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip t
    7·1 answer
  • If Digipics were to begin selling the cameras it assembled directly to customers through a website operated by the company, this
    15·1 answer
  • The ____ server is usually a high-powered workstation that maintains a large file system of data sets, user profiles, and access
    11·1 answer
  • Shirley was laid off by her employer. What benefit is she entitled to receive?
    15·1 answer
  • Question 1 (14 points)
    12·1 answer
  • The major difference between a low-cost provider strategy and a focused low-cost strategy is the a. amount of outsourcing involv
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!