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Citrus2011 [14]
4 years ago
7

Consider the following threeminusyear project. The initial afterminustax outlay or afterminustax cost is​ $1,500,000. The future

afterminustax cash inflows for years​ 1, 2, 3 and 4​ are: $800,000,​ $800,000, $300,000 and​ $100,000, respectively. What is the payback period without discounting cash​ flows?
Business
1 answer:
Elan Coil [88]4 years ago
8 0

Answer:

1.875 years

Explanation:

The payback period is the period required for a project to repay its initial investments.

Pay back period = initial investments/ initial investments

In this case: Initial investments: $ 1,500,000.00

cash flows :

Year       initial invest Accumulated Depreciation

0     ( 1,500,000.00)  (1,500,00.00

1     800,000    800,000

2     700,000   700,000/800,00

Payback period = 1 year + 700,000/800,000

   = 1.875 years

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A change in the asset turnover ratio from 1.3 to 1.6 would indicate a. a decrease in the effectiveness of assets in producing sa
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Answer:

a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.

Explanation:

Assets turnover ratio = \frac{Net Sales}{Average assets}

Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.

Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.

7 0
3 years ago
Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally has paid in full. What kind of
Lorico [155]

Answer: A land contract.

Explanation:

A land contract is a method of property sales where, the seller of the property, finances the sales of his property to the buyer, but keeps possession of the property until the buyer has completed payments on the property's purchase.

Land contract involves the buyer paying by installments for the property until full payment is made.

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3 years ago
"there is no long run ;there are only short and shorter runs"evaluate that statement.​
kirill115 [55]

Answer:

“There is no long run; there are only short and shorter runs.” Evaluate that statement. If you increase production to an infinitely large level, the average variable cost and the average total cost will merge. Why? The following cell phone offer by Sprint is typical of what one can get on a cell phone plan: 4,000 free minutes for $39.99 a month. The fine print says that only 350 of those minutes are anytime minutes; the remaining are restricted to evening and weekend usage. If you go over your allotted time, you are charged 35 cents per minute for any additional minutes

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2 years ago
Missy, a licensee, desperately wants to be appointed the next California Real Estate Commissioner. For the three years she has h
kompoz [17]

If Missy has never had her license suspended or revoked. No, Missy  does not have a chance.

<h3>Whether Missy have a chance or not </h3>

Based on the point Missy is currently in her career she does not have a chance.

In order for her to be chosen or selected for to the post of a  California Real Estate Commissioner by the governor, she must have possess a  minimum of five years working experience as a real estate broker.

Therefore she does not have a chance.

Learn more about whether missy have a chance or not here:brainly.com/question/13370701

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6 0
2 years ago
Kessen Inc.'s bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest
Scilla [17]

Answer:

Explanation:

The market value of debt is the present value of all future cash flows in servicing  the debt.

we need to identify the present value of the future cash flows as follows

Year     no of receipts    Cash flow           Discount factor      present value

1-7               7                        70                     5.1185                     358.296

7                 1                       1000                   0.5649                    564.926  

                             Present Value                                                 923.222

Annuity= P=R(1+(1+i )^-n) /i

Annuity= P=70(1+(1+8.5%)^-7/8.5% = 5.1185

Compound = S=P(1+i)

Compound =P=1000/(1+8.5%)^7    =  0.5649

the value of the bond is = 923.222

8 0
3 years ago
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