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
Alex777 [14]
3 years ago
12

The management of L Corporation is considering a project that would require an investment of $260,000 and would last for 6 years

. The annual net operating income from the project would be $110,000, which includes depreciation of $17,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):
Business
1 answer:
emmasim [6.3K]3 years ago
7 0

Answer:

2.04 years

Explanation:

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

To derive cash flows from net income, add depreciation to net income.

$110,000 + $17,000 = $127,000

Payback period = $260,000 / $127,000 = 2.04 years

I hope my answer helps you

You might be interested in
In the summer of 2002, the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but i
Kisachek [45]

The answer is foreign currency fluctuations.

Foreign currency fluctuations are basically the change in the values of currencies based on the demand of that currency.

In other words, the more the number of investors invests in the stocks regulated by the stock market to buy exports of any country, the more will be the value of the currency of that particular country and vice versa.

Foreign currency fluctuation occurs for all floating currencies all over the world.

Since in the given case, the value of the euro changes from US$1 to US$1.60 from 2002 to 2008 respectively.

Hence, this change in value is called Foreign currency fluctuations.

Learn more about Demand:

brainly.com/question/1245771

#SPJ4

8 0
2 years ago
The supply of headphones is linear and upward sloping, and the demand for headphones is linear and downward sloping. Suppose the
Norma-Jean [14]

Answer:

8,000

Explanation:

Initially, the market is at equilibrium E1: P = P1; Q = Q1

Assume that the tax is imposed, the market will move to when Q = Q2; the price buyers pay is greater than P1, the price producers receive is less than P1.

We have: <em>Price buyers pay - Price producers receive = Tax</em>

As the tax decreases the equilibrium quantity by 700 headphoes

=> Q1 - Q2 = 700

=> Q2 = Q1 - 700

=> Q1 + Q2 = Q1 + Q1 - 700 = 2Q1 - 700

Before tax:

+) the producer surplus (PS) is equal to the area formed by supply curve S, price line P1 and the vertical axis

=> PS1 = Area of BE1P1

+) the consumer surplus (CS) is equal to the area formed by demand D, price line P1 and the vertical axis

=> CS1 = Area of AE1P1

=> The wellness before tax = CS1 + PS1 = Area of AE1B

After tax:

+) the producer surplus (PS) is equal to the area formed by supply curve S, price line (Price producers receives) and the vertical axis

=> PS2 = Area of BDE

+) the consumer surplus (CS) is equal to the area formed by demand D, price line (price buyers pay) and the vertical axis

=> CS2 = Area of ACF

+) The Tax revenue = Tax * Q2 = (Price buyers pay - Price producers receive) * Q2 = CD * DE = Area of CFDE

=> The wellness after tax = PS2 + CS2 + Tax Revenue = BDE + ACF + CDEF

=> Deadweight loss = Wellness before Tax - Wellness after tax = Area of EFE1 = 2,800

The tax decreases consumer surplus by $4,000.00, and it decreases producer surplus by $6,800.00

So that:

+) CS1 - CS2 =  4,000

=> Area of AE1P1 - Area of ACF = Area of CFE1P1 = 4,000

+) PS1 - PS2 = 6,800

=> Area of BE1P1 - Area of BDE = 6,800

=> Area of EDP1E1 = 6,800

=> Area of CFE1P1 + Area of EDP1E1 = 4,000 + 6,800

=> Area of CFE1ED = 10,800

Area of CDEF + Area of EFE1 = Area of CFE1ED = 10,800

=> Area of CDEF + 2,800 = 10,800

=> Area of CDEF = 8,000

=> Tax revenue = 8,000

6 0
3 years ago
What is a reverse mortgage in simple terms
ella [17]

Answer:

Explanation:

The reverse mortgage is the mortgage which is give to the people who age is 62 years or below . The main aim of providing reverse mortgage loan is to take the loan in exchange of collateral security. The collateral security here means the home which is belongs to the borrower. The loan amount is depend upon the value of the home. The time period to repay the amount is of 6 months . If an borrower is unable to pay the amount, than bank or financial institution has the right to recover the loan amount by selling the house property of the borrower, and also it does not entertain with the monthly payments.

7 0
3 years ago
Read 2 more answers
A business plan is a form of proposal. If you are serious about starting a business, you will need to write a comprehensive, tho
Irina-Kira [14]

Answer:

sry I just wanted the points I'm in middle school so I don't know this stuff either but can you give free brainlyest I'm soo close to my next rank I'd really appreciate it if you would

3 0
2 years ago
Rick is an asparagus farmer and the world asparagus market is perfectly competitive. the market price is ​$18 a bundle. rick sel
makkiz [27]
D. I am sure it's d...
6 0
3 years ago
Other questions:
  • We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relations
    6·1 answer
  • A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout fr
    13·2 answers
  • Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $20 for the fifth unit of a public good,
    8·1 answer
  • At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, no stock was issued and the comp
    13·1 answer
  • On January 1, Year 1, Barnes Company issued a $100,000 installment note. The note had a 10-year term and an 8 percent interest r
    14·1 answer
  • Perfect elasticity and zero elasticity refer to the same event, which occurs when quantity demanded or quantity supplied change
    14·1 answer
  • In a proposal to install and monitor a security system statements such as "our company has over 25 years of experience" should a
    13·1 answer
  • Need help please??????????!!!!!!!!!!!!
    5·1 answer
  • Provide examples of each: consumer durable goods, consumer nondurable goods, and services.
    10·1 answer
  • A profit maximizing monopoly's price is
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!