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Rainbow [258]
3 years ago
8

Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufac

turers of tractors. The outlay required is $384,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $510,000 $360,000 2 510,000 360,000 3 510,000 360,000 4 510,000 360,000 5 510,000 360,000 Required: 1. Compute the payback period for the NC equipment. Round your answer to two decimal places.
Business
1 answer:
Elodia [21]3 years ago
7 0

Answer:

2.56 years

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

payback period = amount invested / cash flows

cash flows = $510,000 - $360,000 = $150,000

$384,000 / $150,000 = 2.56 years

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a project with an initial cost of 63800 is expected to generate annual cash flow of 16580 for the next 6 years what is the Proje
patriot [66]

We have:

Initial cost (PV) = 63800

Annual cash flow (Pmt) = 16580

N = 6

Since the cash flows are conventional in nature, we can use the following formula to calculate the IRR:

PV = Pmt x PVIFA(N, R)

63800 = 16,580 x PVIFA (6, R)

PVIFA (6, R) = 3.84800965

Solving for R using PV of annuity table, we get R= 9.4162%

Therefore, Internal rate of return would be 9.4162%.

3 0
3 years ago
ZNet co. is a web based retail company. The company reports the following for the past year. The company's CEO believes that sal
BARSIC [14]

Answer:

1. 17%

2. 42.5%

3. $2,748,900

4. 44%

Explanation:

1. Return on Investment for 2017

= \frac{Operating Income}{Average Invested Assets}

= \frac{2,499,000}{14,700,000}

= 17%

2. Profit Margin 2017

= \frac{Operating Income}{Sales}

= \frac{2,499,000}{5,880,000}

= 42.50%

3. Should the sales increase by 10% in 2018 then the new sales figure will be;

= $5,880,000 + ($5,880,000 *10%)

= $6,468,000

Profit = Sales * Profit Margin

= 6,468,000 * 42.5%

= $2,748,900

Return on Investment for 2018

= \frac{Operating Income}{Average Invested Assets}

= \frac{2,748,900}{14,700,000}

= 18.7%

4. Investment turnover equal for 2018

= \frac{ Sales}{Average Invested Assets}

= \frac{6,468,000}{14,700,000}

= 44%

5 0
3 years ago
a. Due to high demand and high prices, profits in the carpet-painting industry are at all-time highs. Since the carpet-painting
Alecsey [184]

Answer:

enter into the industry

fall

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

4 0
4 years ago
Randi is concerned about unauthorized users connecting to company routers and she wants to prevent spoofing. What is the most es
DanielleElmas [232]

Answer:

A. ACL

Explanation:

Based on the information provided within the question it can be said that the most essential antispoofing technique would be ACL or Access Control Lists. This tool limits access to the router to only those on the list and thus preventing spoofing on the routers. Which is why it is a top recommendation by Cisco for this type of scenario.

8 0
3 years ago
Discuss the trolley experiments Spur and Fat Man with specific reference to how the two have distinct differences within the Doc
Ne4ueva [31]

Answer:

In the "Spur", the choice is between killing five strangers or one loved one. You could pull a lever to redirect the train coming at the five men. You would still be killing the one man tied to sidetrack, but you would save the lives of those other five men.

In the "Fat Man", a runaway train is coming toward five men that are all tied down to the tracks. The train has to be stopped in order to save the lives of those five men. You are the onlooker of this scenario, and you are standing on top of a footbridge looking down at the train situation. There happens to be a fat man standing next to you, and he is a complete stranger. You have the option of pushing him off the bridge in order to save those five men, but you would end up killing the fat man. The philosophical question is whether or not you would kill the fat man in order to save those five lives.thexplanation:

The reason that this scenario is different morally is that you would physically have to push this fat man onto the tracks when he was not in the path of that oncoming train.

The whole concept of the trolley problem is based on the Doctrine of Double Effect (DDE). This doctrine basically states that if you are doing something morally good, which has a morally bad side-effect, it is still ethically okay to go through with that morally good action.

In Spur you don't have to push anyone in the way of the train, you just redirect the train by using a lever. Fat Man scenario is seen as worse because he wasn't in the path of the train. You push him into the path of an oncoming train. Seen as morally worse.

7 0
4 years ago
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