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poizon [28]
3 years ago
11

An investment project provides cash inflows of $600 per year for eight years.

Business
1 answer:
I am Lyosha [343]3 years ago
7 0

Answer:

(i) 2.71 years

(ii) 5.38 years

(iii) Never or 0

Explanation:

1. Payback period:

= Initial cost ÷ cash inflows

= 1625 ÷ 600

= 2.71 years(Approx).

2. Payback period:

= Initial cost ÷ cash inflows

= 3225 ÷ 600

= 5.38 years(Approx).

3. The payback period for an initial cost of $5,100 is a little trickier.

Notice that the total cash inflows after eight years will be:

= 8 × $600

= $4,800

Payback period

= Initial cost ÷ cash inflows

= 5100 ÷ 600

= 8.5

This answer does not make sense since the cash flows stop after eight years, so again, we must conclude the payback period is never.

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uppose that Rowan, Inc. builds a high-speed, magnetically powered transportation system from New York to Los Angeles, which is t
IrinaVladis [17]

Answer: b. increasing returns to scale.

Explanation:

With the high capital costs having enabled decreasing average costs for any conceivable level of demand, the company would be making an increasing returns to scale which means that it would be making more return per capital spent.

This will create a natural monopoly because the company will be more efficient in this particular industry and if another company tried to come in, they would have to spend a lot of money to get to a point of increasing returns to scale.

5 0
3 years ago
A company has a 40% gross margin, general and administrative expenses of $50, interest expense of $20, and net income of $70 for
Romashka [77]

Answer:

Answer is A

Explanation:

Remember Gross Margin = Gross Profit /Sales Revenue

We already know that Gross Margin = 0.4

We assume sales revenue as the unknown value (S)

Using the relationship above: Gross Profit (GP) = 0.4S

We know that Profit Before Tax = Gross Profit - General & Admin Expenses - Interest Expense

Substitute the values in the equation above.

Profit Before Tax (PBT) = 0.4S - 50 - 20

                                      = 0.4S - 70

To calculate the Tax we multiply the Tax rate (30%) by the PBT

Tax = (0.3) x (0.4S -70)

      = 0.12S - 21

We know that Net Income = PBT - Tax

We now substitute the values:

70 = 0.4S - 70 - (0.12S - 21)

Solving the equation for S results in the value of Sales Revenue equaling $425.

8 0
3 years ago
If offered employment by Amazon, would you be legally eligible to begin employment immediately?
mr Goodwill [35]

Answer:

Explanation:

offered employment by Amazon, would you be legally eligible to begin employment immediately?

Legally eligible for employment could be explained as having the right to take up a job in a particular country, which means one should posses a work permit or visa which will allow one to work for an employer in US since AMAZON is in US.

.it should be noted that The applicant is considered eligible, if the applicant is available bin US when submitting it as a citizen or with work permit

Therefore, I'm eligible to begin work immediately, if I'm offered employment by Amazon, if I meet the above criteria, and we know Amazon is in US.

5 0
2 years ago
Which of the following statements regarding the center of gravity method is false
grigory [225]

Answer:

Consider the following explanation

Explanation:

False statement are as follows,

A)  It is designed to minimize the maximum possible travel distance to any location

This statemet is false

Explanation- Center of gravity has nothing to do with travel distance or any kind of diisplacement. Following sentence is used in cargo industry ffor effieicent transportation.

C) And D) Are also false

Explanation- They are also a part of cargo management hence cannot be used in center of gravity method.

Only Option B) Is correct

8 0
3 years ago
Michael Co. is a corporation that sells breakfast bars. Based on the accounts listed below, what are Michael's total trade recei
Thepotemich [5.8K]

Answer:

B. $42,000

Explanation:

Trade receivables refers total amounts that customers of a company are owing the company for goods or services sold to them.

For Michael Co., this can be calculated as follows:

Michael's total trade receivables = 3-month note due from Michael's main customer + Due and unpaid from this month's sales + Due and unpaid from last month's sales

Therefore, we have:

Michael's total trade receivables = $12,000 + $19,000 + 11,000 = $42,000.

Therefore, Michael's total trade receivables is $42,000.

7 0
2 years ago
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