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il63 [147K]
3 years ago
15

A company is considering the purchase of a new piece of equipment for $117,200. Predicted annual cash inflows from this investme

nt are $53,000 (year 1), $21,500 (year 2), $26,500 (year 3), $20,500 (year 4) and $23,000 (year 5). The payback period is:
Business
1 answer:
monitta3 years ago
8 0

Answer:

3.79 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $117,200

In year 1 = $53,000

In year 2 = $21,500

In year 3 = $26,500

In year 4 = $20,500

In year 5 = $23,000

If we sum the first 3 year cash inflows than it would be $101,000

Now we deduct the $101,000 from the $117,200 , so the amount would be $16,200 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $20,500

So, the payback period equal to

= 3 years + $16,200 ÷ $20,500

= 3.79 years

In 3.79 years, the invested amount is recovered.  

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Bonita Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item N
riadik2000 [5.3K]

Answer:

Explanation:

Amount of Bolton Company inventory = 38,972

Calculations are attached

1. Find net realizable value, which is selling price - cost of disposal;

2. Then subtract normal profit from net realizable value = [g];

3. Find designated market value by choosing the middle value of cost to replace, net realizable value and [g];

4. Choose lowest between designated market value and selling price;

5. Multiply by quantity.

7 0
3 years ago
Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance,
allochka39001 [22]

Answer:

Depreciation: $4,000.00

Variable costs : $914.81  

Explanation:

The value of the car when new = $19,860.00

Values after two years =$11,860.00

Accumulated depreciation for two years

= $19,860.00 - $11,860.00

=$8,000.00

Assuming straight depreciation method, depreciation each of the two years

=$8,000.00/2

=$4,000.00

Variable costs are the cost that changes with usages. In this case, variable costs are gas and oil, lube, and miscellaneous.

Variable costs =  $845.96 +  $68.85

Variable costs =  $914.81    

 

7 0
3 years ago
Read 2 more answers
The establishment of lobster fishing season in the state of Florida is an example of:
SashulF [63]

Answer:

Government intervention in the economy.

Explanation:

The government in some cases take actions that affect the economy to have an impact and address inefficiencies. In this case, the intervention takes the form of a regulation that establishes a lobster fishing season in the state of Florida. Because of that, the answer is that this is an example of government intervention in the economy.

5 0
3 years ago
Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations ma
irga5000 [103]

Answer:

Maple Leaf, Inc.

Inventory Turnover:

b. Greater than 2 but less than 3

Explanation:

a) Data and Calculations:

1) Average inventories:

Raw materials     $2,500,000

Work-in-process  $1,000,000

Finished goods      $800,000

Total average inventory   $4,300,000

Cost of goods sold = $12,000,000

Inventory Turnover = Cost of goods sold/Average Inventory

= $12,000,000/$4,300,000

= 2.79 times

2) Inventory turnover is a financial ratio that shows the number of times in a year that inventory has been sold by Maple Leaf, Inc.  When it divides the number of days, say 360 days in a year, the ratio that comes out shows the number of days it takes Maple to sell its inventories.

3 0
3 years ago
Prior to labor unions, both the employer and employee had the legal right to terminate an employment
Kruka [31]

Before the times of the labor unions, both the employer and the employee reserved the right of employment at will, meaning either one could terminate the agreement at any time and for any reason.

The correct term for the situation proposed in the question is employment at will. The other options describe agreements that have arisen since the creation of the labor unions.

The first option, a closed shop, described an agreement made between the hiring party and the labor unions in which the hiring party agrees to <u>only hire members of the union</u>, while an open shop is just the opposite.

Collective bargaining, on the other hand, is the long process in which the workers of an institution work through their labor unions in order to <u>negotiate contracts </u><u>and the terms of </u><u>employment</u><u>, which include income and benefits. </u>

Therefore the only option that existed prior to the development of labor unions is employment at will, which allowed the termination of a contract at any time for any reason.

To learn more visit:

brainly.com/question/518131?referrer=searchResults

3 0
3 years ago
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