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
vesna_86 [32]
3 years ago
5

Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh

ich has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.): Sales $ 500,000 Less cash variable expenses 200,000 Contribution margin 300,000 Less fixed expenses: Fixed cash expenses $ 150,000 Depreciation expenses 45,000 195,000 Net operating income $ 105,000 The company's required rate of return is 12%. What is the payback period for this project?
Business
1 answer:
Nastasia [14]3 years ago
6 0

Answer:

3 years

Explanation:

Since the income tax is ignored, so the operating cash flows would be

= EBIT + Depreciation - Income tax expense

= $105,000 + $45,000 - $0

= $150,000

The operating cash flows are same for ten years

And, the initial investment is $450,000

So, the payback period would be

= Initial investment ÷ Net cash flows

= $450,000 ÷ $150,000

= 3 years

You might be interested in
Segments of business's macroenvironment include all of the following except a. the economic environment. b. the social environme
fgiga [73]

Answer:

d. the natural environment.

Explanation:

There are two business environment

The first one is microenvironment and the other one is the macro environment

The microenvironment refers to that environment that covers the business functions with respect to the general public, customers, competitors, employees, etc

While the macro environment refers to that environment that affects the business functions or its workings

It can be in various ways like

1. Political & legal  

3. Social

4. Technological

5. Demographic

6. Economical

6 0
3 years ago
A company has a selling price of $1,300 each for its printers. Each printer has a 2 year warranty that covers replacement of def
riadik2000 [5.3K]

Answer:

$56,000

Explanation:

The computation of the warranty expense for the month of November is shown below:

Warranty expense = Number of printers × Estimated percentage of defectives parts × Average cost per printer

= 20,000 printers × 2% × $140

= 400 × 1460

= $56,000

We simply multiplied the number of printers with the estimated percentage and the average printer cost so that the warranty expense could come

3 0
2 years ago
With relevant examples discuss intangible business property that is protected by law and which an entrepreneur should consider w
ipn [44]

Answer:

Explanation:

Intangible property are useful resources, they are asset that are not physical but they produce much economic benefits to organization , entrepreneur.some of this asset are Goodwill, brand recognition, as well as intellectual property.

Some of these intangible asset are intellectual property and are protected by law from stealing away by those that are not authorized to it.

Examples of intangible business property that is protected by law are:

✓patent

✓copyright

✓ franchises

✓trade mark

✓Goodwill

✓tradenames

✓ trade secret

1)Patent is one of the intangible asset granted by government and protected to an inventor who is entrepreneur that exclude others from selling as well as using the invention for particular period of time. If an entrepreneur comes up with an invention it will be protected for him/ her. it can be categorized as utility, design, and plant. Example of invention that falls under utility is microwave oven. Other invention are light bulb, printing press.

2) copyright is another intangible property, in which the original works of authorship of an entrepreneur is protected, dramatic, musical work as well as computer software, and architecture of an entrepreneur is protected, this will help the entrepreneur to enjoy the benefits of his/her labor and to grow fast in term of finance.

3)trademark is another intangible property that is protected by law which includes design, expresion, sign that identifies the product of a company from another, when an entrepreneur is starting a business , trademark is important because his/her product will be easier to identify by consumer and this helps business to grow faster. Example is the logo that Apple( apple shape with a bite) uses as trademark on all their products, swoosh logo that Nike uses on their products

4)trade secrets is an intangible property as well as intellectual property that is been protected by law it contains processes, design, information with inherent economic values that are not generally known by everyone, this is important to enterprenurer because trade secret helps the individual with the secret to sustain his/her business without been hijacked. Example of trade secret is the

secret formula for Coca-Cola which other soft drinks producer doesn't know.

5 0
2 years ago
Phil Graves Cemetery had 63,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the f
Whitepunk [10]

Answer:

Dividends for the year $63,000

Explanation:

Phil Graves Cemetery

Jan. 1 Shares issued and outstanding 63,000

June 1 2-for-1 stock split x 2

June 1 Shares issued and outstanding 126,000

Oct. 15 Cash dividend declared (per share)x $ .50

Dividends for the year $63,000

Therefore the amount that Graves should report as dividends is $63,000

7 0
2 years ago
After a business transaction has been analyzed and entered in a journal, the next step in the recording process is to transfer t
Jlenok [28]
After recording the transaction in journal you must record it on General Ledger.
3 0
3 years ago
Other questions:
  • When Arturo Gomez opened his Mexican restaurant in a fashionable suburb of Kansas City, he believed that the most important elem
    6·1 answer
  • Which of the following is true? a. Mutual gains could be realized if the United States specialized in producing food and South K
    14·1 answer
  • Your broker calls to offer you the investment opportunity of a​ lifetime, the chance to invest in​ mortgage-backed securities. T
    10·1 answer
  • A business is concerned with many day-to-day activities. Some of the most important are the planning and conception of the produ
    11·1 answer
  • The numbers on the bottom of a typical check represent all of the following except
    11·2 answers
  • The primary purpose of the legal reserve requirement is toa. Prevent banks from hoarding too much vault cash.b. Provide a means
    13·1 answer
  • A bond issue with a face amount of $400,000 bears interest at the rate of 8%. The current market rate of interest is 9%. These b
    5·1 answer
  • New technology is changing the way customers get their news, and Matador Media needs to find employees with entirely different s
    10·2 answers
  • The principal-agent problem, as applied to the labor market, would have the :
    11·1 answer
  • Read these articles on the importance of setting goals, Article 1 and Article 2. As you read, think about how each article defin
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!