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Semenov [28]
3 years ago
8

Accelerated Finance is deciding whether to purchase new accounting software. The cost of the software package is $ 67 comma 000​

, and its expected life is ten years. The payback for this investment is four years. Assuming equal yearly cash​ inflows, what are the expected annual net cash savings from the new​ software? (Assume the investment has no residual​ value.)
Business
1 answer:
sammy [17]3 years ago
3 0

Answer:

The answer is: Expected annual net cash savings are $16,750.

Explanation:

Please find the below for detailed explanations and calculations:

Payback period is defined as the time it takes an investment to recover its initial investment.

In this case, the initial investment is the cost of software package at $67,000, while the payback period is four years.

We apply the payback period formula to calculate payback period to calculate the Expected annual net cash savings:

Payback period = Initial investment / Net cash flow per period <=> Net cash flow per period = Initial investment / payback period = 67,000 / 4 = $16,750.

So, Net cash savings annually is expected at $16,750. In other words, if the firm is to save $16,750 per year from owning the software, it will take the firm 04 years to recover its initial investment.

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Answer:

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5 0
3 years ago
Find the average variable cost for producing 18 sneakers. Round your answer to the nearest hundredth.
murzikaleks [220]

Answer: $2.78

Explanation:

Average variable cost is calculated by dividing the total variable cost of producing a certain number of units of a good by that same number of units.

Average variable cost = Variable cost of producing 18 sneakers / 18

= 50 / 18

= 2.7778

= $2.78

7 0
3 years ago
A simple scoring model is used to decide among three projects that we'll call A, B, and C. The total score for project A is 30,
Flauer [41]

Answer: D) Project A is better than project B for this company at this point in time.

Explanation:

Option D is the best option because we do not know that the basis for the scoring model directly translates to earnings. The scoring of Project A at 30 does not necessarily mean that it's expected to earn those amounts of revenue and therefore triple that of Project C. We do not know because the information is not complete.

What we do know is that A has the highest score out of all projects and this is why it is better to do Project A as opposed to Project B.

4 0
3 years ago
Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply ma
AnnyKZ [126]

Answer:

Unitary cost= $62.5

Explanation:

Giving the following information:

Predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and 20,000 hours.

Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour.

First, we need to determine the allocated MOH:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 50000/20000= $2.5 per direct labor hour

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base= 2.5* (1500/5)= $750

Total cost= 4000 + 1500 + 750= $6,250

Unitary cost= 6250/100= $62.5

3 0
3 years ago
When Galaxy Ventures, a real estate company, entered the low-cost housing business, the market was already saturated with other
GenaCL600 [577]

Answer:

The answer is Late-mover disadvantages

Explanation:

A late mover is a company that enters a business some time after the business pioneers and early followers.

From the question above, Galaxy Ventures is a late mover in the low-cost housing business. They were at a huge disadvantage, and this includes:

  • First of all, lack of customer loyalty and substantial dividends (from the question).
  • The pioneers and early followers can set the business standards which may be difficult for a late mover to follow.
  • The pioneer can easily create entry barriers that a late-mover might find difficult to break.

3 0
3 years ago
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