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NeTakaya
3 years ago
6

A project has an initial cost of $44,000. Expected cash flows as a result of this project are projected as indicated below. Calc

ulate the payback period for this project. Assume a discount rate of 9%. HOMEINSERTDATA
Business
1 answer:
meriva3 years ago
6 0

Answer:

3.5 years

Explanation:

The computation of the payback period is shown below:

In year 0 = -$44,000

In year 1 = $10,000

In year 2 = $10,000

In year 3 = $15,000

In year 4 = $18,000

In year 5 = $15,000

If we add the first 3 year cash inflows than it would cost $35,000

Now we deduct the $35,000 from the $44,000 so the amount left would be $9,000 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 $18,000

So, the payback period equal to

= 3 years + $9,000 ÷ $18,000

= 3 years + 0.5

= 3.5 years

Since the question has ask about only payback period so we ignored the discount rate i.e given in the question

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Fields Company purchased equipment on January 1 for $180,000. This system has a useful life of 8 years and a salvage value of $2
bonufazy [111]

Answer:

B. $24,000.

Explanation:

The computation of the depreciation per units under the units-of-production method is shown below:

= (Original cost - residual value) ÷ (estimated production units)

= ($180,000 - $20,000) ÷ (40,000 units)

= ($160,000) ÷ (40,000 units)

= $4 per unit

Now for the second year, it would be

= Production units in second year × depreciation per unit

= 6,000 units × $4

= $24,000

3 0
3 years ago
Bases of business or organizational market segmentation that center on the customer attributes are categorized as: Group of answ
sweet-ann [11.9K]

Hard qualitative criteria

Explanation:

The qualitative requirements in marketing begin with a quick-term target, in which the qualitative standards: architecture, online distribution platforms, customer satisfaction and e-loyalty are also included.

Briefly, the process of gathering large amounts of data by polls, surveys and voting techniques relates to quantitative market research. Qualitative market research, alternatively, involves trying to determine customer motivation through close analysis ––typically in a tiny group or face-to-face encounter.

5 0
3 years ago
Ethan is an operations manager at a nonprofit organization. He supervises a team of 20 people who provide social services tounde
Reil [10]

Answer: Middle of the road style

Explanation:

The middle-of-the-road leader is s that of leader that has a balanced concern for both the employees and production. This kind of leader conforms to average performance from the employees. The interest of the leader is balanced and may lead to mediocre production and unmotivated and unsatisfied employees.

The middle-of-the-road leadership style is always plotted in the center of the leadership grid and it shows that the concern for production and people is balanced. Ethan maintainsing a balance between getting job done and keeping a healthy work environment shows that the middle of the road style is used.

5 0
3 years ago
a company paid $43,800 to acquire 7% bonds with a $46,000 maturity value. the company intends to hold the bonds to maturity. the
-BARSIC- [3]

The cash proceeds the company will receive when the bonds mature equal $46866.

When bonds are redeemed at maturity, they are always redeemed at face value since by then any bond discount or the premium would have become zero, plus the last interest payment.

Cash proceeds = Maturity amount + interset

                        = $46,000 + ($46,000 x 7% x 1/2) assuming semi-annual interest payments

                        = $46,000 + $1,365 = $47,365

Cash proceeds = Maturity amount + interset

                        = $43,800 + ($43,800 x 7%) assuming annual interest payments

                        = $43800 + $3066 = $46866

Learn more about maturity value here:-brainly.com/question/9099365

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8 0
2 years ago
Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. Merchants Bank
fomenos

Answer:

The answer is 0.91%

Explanation:

Solution

Farmers Bank:

Lending Amount =$50,000

Nominal rate (APR) =5.0%

Interest paid = Quarterly (4 periods in a year)

Thus

The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1

=(1 +5.0%/4)^4 -1

=(1+ 0.0125)^4 -1

=(1.0125)^4 -1

=1.05094533691406 -1

= 0.5094533691406

= 5.0954%

Therefore the effective annual rate in farmer bank is 5.0954%

Merchants Bank:

Lending Amount =$50,000

Nominal rate (APR) =6.0%

Interest paid = Annually (1 period in a year)

Thus

The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1

=(1+ 6.0%/1)^1 -1

= (1+0.06)^1 -1

=(1.06)^1 -1

=1.06-1

=0.06 or 6.0000%

Therefore the effective annual rate of the Merchant bank is 6.000%

Now,

The difference between the annual rates=EAR merchant bank -EAR Farmers bank

=6.0000% - 5.0945%

=0.9055% or 0.91%

Therefore the difference between the effective annual rates charged by the two banks is 0.91%

6 0
3 years ago
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