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
Musya8 [376]
3 years ago
13

A company is considering two projects. Project 1 has an initial investment of $60,000 and expected cash inflows of $20,000 each

year for 5 years. Project 2 has an initial investment of $80,000 and expected cash inflows of $20,000 each year for 10 years. Using the payback period as the evaluation method, which investment should be chosen by management?
Business
2 answers:
Vikki [24]3 years ago
6 0

Answer:

Project 1

Explanation:

The computation of the payback period is shown below:

As we know that

Payback period = Initial investment ÷ Net cash flow

For project 1

The payback period would be

= $60,000 ÷ $20,000

= 3 years

For project 2

The payback period would be

= $80,000 ÷ $20,000

= 4 years

Based on the payback period, project 1 should be chosen as the initial amount would be recovered in 3 years instead of 4 years shown in project 2

padilas [110]3 years ago
4 0

Answer:

Project 1 with payback period of 3 years

Explanation:

You might be interested in
ack Hammer invests in a stock that will pay dividends of $3.06 at the end of the first year; $3.42 at the end of the second year
aleksley [76]

Answer:

$46.82

Explanation:

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 = $3.06

Cash flow in year 2 = $3.42

Cash flow in year 3 = $3.78  + $56 = $59.78

I = 13%

Present value = $46.82

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

8 0
3 years ago
In a condominium, who is responsible for maintaining the internal systems of an individual unit?A. The condominium associationB.
lions [1.4K]

Answer:

<em>C. The individual unit owner</em>

Explanation:

Based on what you actually own, your maintenance responsibilities for the property – and therefore your repair costs, and so on – will vary.

Normally, a unit owner is made responsible for managing all that is a part of his unit system.

For instance, if you identify a "unit" in your condominium complex to include the outside shutters on your windows, it will be your responsibility to maintain that.

If they collapse off from each other a few years after you move in, you probably won't be able to get help from the home owners association (excluding proof that they were defective at first).

5 0
3 years ago
__________ is a direct lobbying technique used by interest groups to influence public policy.
amm1812
Good morning.

The answer is : Providing election support.


Good luck!
7 0
3 years ago
Read 2 more answers
Which section of the business plan contains information about the financial history of the company? A. Financial Analysis B. Fun
Romashka [77]
I believe it is A if not then B hope this helps
6 0
3 years ago
Read 2 more answers
Give examples of import export and entreport trade​
luda_lava [24]

Answer:

suppose import are carpet woolen clothes and tea leafs and enterport trade is the clothes were bring from Nepal and then it again sold to Thailand then it is the example .

8 0
3 years ago
Other questions:
  • Karen Price has determined that her net worth is $56,000, excluding her home. She owes $80,000 on her mortgage and $13,000 on a
    11·1 answer
  • Indicate whether each of the following audit procedures is a test of controls, a substantive test, or dual-purpose test. Next, i
    6·1 answer
  • A few years ago, in order to gain market share, Blackboard™, a well-known management system software company used by many colleg
    8·1 answer
  • Property Rights and Corruption When looking at a country as a market or investment, the international business must consider the
    15·1 answer
  • The following costs and inventory data were taken from the accounts of Simon Company for 2010:
    6·1 answer
  • g Texas Corporation purchases a piece of equipment on January 1 for $300,000 and the equipment has an expected useful life of te
    11·1 answer
  • Maziarz Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 220
    11·1 answer
  • Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates.​ Crane's operations are divide
    9·1 answer
  • An individual has $20,000 invested in a stock with a beta of 0.4 and another $65,000 invested in a stock with a beta of 1.8. If
    9·1 answer
  • The social security deduction is 6.2 percent of a person's salary up to a limit of 102k the medicare deduction ais up to 1.45 pe
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!