1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
e-lub [12.9K]
3 years ago
11

Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no

salvage value. The machine will increase Major's after-tax cash flow by $2,000 annually for five years. Major uses the straight-line method of depreciation and has an incremental borrowing rate of 10%. The present value factors for 10% are as follows:Ordinary annuity with five payments 3.79Annuity due for five payments 4.17Using the payback method, how many years will it take to pay back Major's initial investment in the machine?
Business
1 answer:
Mila [183]3 years ago
3 0

Answer:

payback 2.5 years

Explanation:

the payback will be the point in time at which the project cash flow equal the invesmtent.

This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

investment: 5,000

increase in cash-flow 2,000

Investment/cash flow = 5,000 / 2,000 = 2.5 years

The depreciation are not considered as this are not cash flow.

You might be interested in
Which piece of information always appears on third party cards?
almond37 [142]
This is assuming that third party cards refer to third party issued credit cards that are issued by banks while using the credit provider's system. When you get a third party issued card, the information that is always there would be the name, the card number, the card account number, and expiration date (there is also a CVV at the back). 
5 0
3 years ago
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of ber
Firlakuza [10]

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity  cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

7 0
3 years ago
In network economics, the value of a commercial software vendor's software products:
Natali [406]

Answer:

increases as more people use them.

Explanation:

Network economics refers to a business that uses network effect. It is also called Netromix. The value of a good is increased as the number of buyers increases.

The business will benefit from feedback received by customers that use their products.

For example online services like LinkedIn and Twitter benefit from this type of framework. The more users that use these software th more the business gains.

7 0
3 years ago
On February 1, the Acts Tax Service received a $3,600 cash retainer for tax preparation services to be provided rateably over th
MatroZZZ [7]

Answer:

$2,700

Explanation:

The computation of the unearned service revenue balance reported on the February 28 balance sheet is shown below:

= Total cash received - expired service revenue

= $3,600 - $900

= $2,700

The expired service revenue is

= Received amount ÷ number of months

= $3,600 ÷ 4 months

= $900

It is come by deducting the expired service revenue from the total cash received so that the balance could come

7 0
2 years ago
Livebinders is an example of​ a(n) _______________.
sladkih [1.3K]
<span>The answer is C. research and content manager
Livebinder is a software allow you to categorize the data/information according to their own group criteria.
This will help research and content development process by making it easier by an organization to seek relevant data to answer a unique problem.</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • Because training is expensive it is important for an organization to:____________.
    15·1 answer
  • The Gingham Company's budgeted income statement reflects the following amounts:
    10·1 answer
  • a person who can make decisions based on logical evidence is defined as which of the following? caretaker insurer reasonable per
    12·2 answers
  • According to the AMA, ______ is "the placement of announcements and persuasive messages in time or space purchased in any of the
    10·1 answer
  • How can the government reduce the wealth gap in a mixed market economy
    11·1 answer
  • The following information is available for Chap Company.Sales: 350,000Cost of goods sold: 120,000Total fixed expenses: 60,000Tot
    15·1 answer
  • Discuss target market strategies. The target market strategy identifies which market segment or segments to focus on. This proce
    14·1 answer
  • The question of how a tax change might impact U.S. economic output is most closely associated with the study of
    14·1 answer
  • Which of the following are ways in which most neo-Freudian theorists differ from Freud, according to the text
    12·1 answer
  • All leveling techniques delay noncritical activities by using ________ to reduce peak demand.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!