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Snowcat [4.5K]
3 years ago
7

Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its initial after tax cost is​ $5,00

0,000 and it is expected to provide afterminustax operating cash inflows of​ $1,800,000 in year​ 1, $1,900,000 in year​ 2, $700,000 in year 3 and​ $1,800,000 in year​ 4?
Business
1 answer:
Firlakuza [10]3 years ago
5 0

Answer:

Yes, Tangshan Mining company should accept the project.

Explanation:

Payback period is the number of years it takes for a project's expected cash inflows to recover the initial investment amount.

Tangshan company's required payback period = 3.5 years

<u>Year             CF                       Net CF</u>

0             -5,000,000        -5,000,000

1               1,800,000          -3,200,000

2              1,900,000          -1,300,000

3                700,000           -600,000

4               1,800,000            1,200,000

<em>Payback period = last year with -net CF +(absolute net CF that year /total CF the following year)</em>

Payback period = 3 + (600,000 / 1,800,000)

=3 + 0.33

= 3.33 years

Since 3.33 years is lower than the required payback period of 3.5 years, Tangshan Mining company should ACCEPT the new project; it will take less years to fully recover the initial amount investment.

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Answer:

$40.875

Explanation:

Given that,

Selling Expenses = $ 9,600

Merchandise Inventory on December 31 = 33,000

Merchandise Inventory on January 1 = 47,000

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Sales commissions = 7,300

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Cost of goods sold:

= Beginning merchandise inventory + Merchandise purchase - Ending merchandise inventory

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= $163,500

If Crabapples sold 4,000 boxes of dry fruit during the​ year, then the cost per box of dry fruits is:

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3 years ago
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Dmitriy789 [7]

Answer:

7.95%

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The formula for calculating future value:

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6 0
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Answer:

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working with teams in an inclusive leadership scheme.

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