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34kurt
3 years ago
7

Payback period was the earliest -Select- selection criterion. The -Select- is a "break-even" calculation in the sense that if a

project's cash flows come in at the expected rate, the project will break even. The equation is:
Business
1 answer:
soldier1979 [14.2K]3 years ago
5 0

Answer: 1. Capital Budgeting

2. Payback Period

3. Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)

Explanation:

Payback period was the earliest <u>Capital Budgeting</u> selection criterion. The <u>Payback Period</u> is a "break-even" calculation in the sense...

The Payback period is one of the most simple methods in Capital Budgeting and the earliest as well. It simply checked how long it would take to pay back an investment which made it very alluring to investors who wanted to know how long it would be till they started getting a profit.

It therefore essentially checked when the project would Break-Even.

The formula is,

Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)

This means that to calculate the Payback Period, for example, say the investment was $500 and the project brought in $120 for 5 years.

That would mean that in year 4 it would have brought it $480. Year 4 is the <em>Number of Years prior to Full recovery</em>.

The $20 left is the <em>Unrecovered cost at the start of the year</em> and the <em>Cashflow for the year is $120</em>. The Payback is therefore,

= 4 + (20/120)

= 4.17

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Two weeks ago Acme Electronics announced that it had developed a new chip design which was being considered by major companies f
astraxan [27]

Answer: delayed reaction.

Explanation:

The scenario depicted in the question is an example of a delayed reaction. Before the announcement was made that a new chip design had been developed, Acme common stock closed at $20 but since the announcement was made, there has been an increase in the closing price of the stock .

This shows that the information flow had an effect on the price of the stock and this led to the delay in market reaction. Therefore, this is referred to as a delayed reaction.

7 0
3 years ago
Lang Warehouses borrowed $178,960 from a bank and signed a note requiring 8 annual payments of $28,819 beginning one year from t
yan [13]

Answer: 6%

Explanation:

The annual payments can be considered to be annuity payments as they are constant. The amount borrowed can be considered the present value of the annuity.

Present value of annuity = Annuity * Present value interest factor of annuity, 8 years, %?

178,960 = 28,819 * Annuity factor

Annuity factor = 178,960 / 28,819

= 6.20979

To find out the interest rate, look at the Present Value of Annuity table and go to the 8 period column. Look for 6.20979. The interest rate that intersects with this factor is the interest rate implicit in this agreement.

That rate is 6%.

4 0
2 years ago
What are two main reasons for having a savings account
Sonbull [250]

Answer:

to start building wealth

and for easy accessibility (emergency funds are there)

5 0
3 years ago
Read 2 more answers
question content area for the year ended december 31, orion, inc. mistakenly omitted adjusting entries for $1,500 of supplies th
Oduvanchick [21]

Errors will have a $2,300 overstatement of net income on revenues, costs, and net income.

The amount earned by an individual or business after costs, allowances, and taxes is referred to as net income. Net income in the company is the amount that remains after all costs, such as salaries and wages, the cost of goods or raw materials, and taxes, have been paid.

Net income = Total revenue - total expenses

where,

Total revenue = Unearned revenue = $4,200

Total Expense = Supplies expense + insurance expense = $1,500 + $5,000 = $6,500

Net Income = Total revenue - Total Expenses = $4,200 - $6,500

Net Income = -$2,300

Therefore, there's an overstatement of $2300 in Net Income.

To know more about Net Income, refer to this link:

brainly.com/question/6391667

#SPJ9

6 0
1 year ago
Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished g
snow_tiger [21]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Beginning inventory= 208,500 units.

Sales:

second quarter= 417,000 units

third quarter= 469,000 units

fourth quarter= 289,500 units.

Desired ending inventory= 50% of the next quarter's budgeted sales.

To calculate the production for each quarter, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Second-quarter:

Sales= 417,000

Desired ending inventory= 0.5*469,000= 234,500

Beginning inventory= (208,500)

Total production= 443,000

Third-quarter:

Sales= 469,000

Desired ending inventory= 0.5*289,500= 144,750

Beginning inventory= (234,500)

Total production= 379,250

4 0
3 years ago
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