Answer: 1 year and 6 months
Explanation:
The cash flows are as follows,
Year 0 = ($2,500)
Year 1 = $1,500
Year 2 = $1,500
Year 3 = $1,500
Payback period is the time it will take to break even the intial investment (In this question the initial investment is $2,500)
The sum of the cashflows of year1 and year2 is equal to $3,000
which means that the payback period is somewhere bbetween year 1 and year2
1500/3000 = 0.5 year or 6 months
the total payback period is 1 year and 6 months
Answer:
C seems the most reasonable
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
The public debt is the amount of money that a government owes to outside debtors. Public debt allows governments to raise funds to grow their economy or pay for services. Politicians prefer to raise public debt rather than raise taxes. When public debt reaches 77% of GDP or higher, the debt begins to slow growth.
Answer:
a. Computation of net income
Particulars Amount
Service revenue $52,500
Less: Expenses
Salaries and wages expenses ($23,520)
Utilities expense ($2,600)
Rent expense ($8,740)
Advertising expense <u> ($1,510)</u>
Net Income <u>$16,130</u>
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b. Computation of comprehensive income statement
Particulars Amount
Net Income $16,130
Add: Other Comprehensive Income <u> $380 </u>
Comprehensive Income <u>$16,470</u>
Note: Dividend will not be included as it forms part of Income statement
