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
Novay_Z [31]
3 years ago
12

First Choice Carpets is considering purchasing new weaving equipment costing $ 734 comma 000. The​ company's management has esti

mated that the equipment will generate cash inflows as​ follows: Year 1 $ 214 comma 000 2 214 comma 000 3 254 comma 000 4 254 comma 000 5 154 comma 000 Considering the residual value is​ zero, calculate the payback period.​ (Round your answer to two decimal​ places.)
Business
1 answer:
zloy xaker [14]3 years ago
7 0

Answer: 3.20 years

Explanation:

The Payback Period is a financial evaluation technique for the viability of projects by checking how long it will take for a project to pay back it's Initial cost of capital.

The above weaving machine cost $734,000 and will generate cash for 5 years.

In the first 3 years it will generate,

= 214,000 + 214,000 + 254,000

= $682,000

You can tell that the Machine will have paid off by the fourth year judging by how much is left to payback.

However, the exact period is needed. You can get that by dividing the amount remaining by the Cashflow for the year in which it is to be completed. This way you can see the proportion of time it will take for the current year to reach the desired sum.

The Cashflow for Year 4 is $254,000.

= (Initial investment - Amount from Year before Payback Year) / Cashflow in Payback Year

= (734,000 - 682,000) / 254,000

= 52,000/ 254,000

= 0.20

It will take 0.20 of Year 4 to payback the amount fully.

That means that the total Payback Period is,

= 3 years + 0.20

= 3.2 years

You might be interested in
Tax that you pay when making a profit from selling a house is an example of:
UkoKoshka [18]
Tax that you pay when making a profit from selling a house is an example of: <span>A. Capital Gains Tax 
Every time you sell an asset that is not under investment category, The difference between your selling price with the initial cost when you buy that asset should be recorded as a Capital Gain.
In United states, you're inclined to pay around 28 % from the total capital gain as Capital Gain Tax</span>
4 0
3 years ago
Read 2 more answers
In the far off kingdom of Viracien there is a healthy sized population of citizens over 16 years old. The last census indicated
Anarel [89]

Answer:

6.5%

Explanation:

Number of people unemployed = 237,000

Labor force = 5 million - 1.3 million - 50,000

Labor force = 3.65 million

Unemployment rate = Number of people unemployed/Labor force*100

Unemployment rate = 237,000/3.65 million*100

Unemployment rate = 6.4931501%

Unemployment rate = 6.5%

8 0
3 years ago
Direct labor and indirect labor are recorded, respectively, to:A. Factory Overhead and Goods in Process.B. Goods in Process and
alexgriva [62]

Answer: The correct answer is "D. Goods in Process and Factory Overhead."

Explanation: Direct labor: it is the labor consumed in the areas that are directly related to production. It is generated by the workers or operators of the company. It is part of the cost that is incorporated directly into the product. Therefore it is registered as goods in process.

Indirect labor: it is the labor consumed in the administrative areas of the company or that production staff that does not participate directly in the production of the good. As it is part of the cost that is indirectly incorporated into the product, it is considered factory overheads.

4 0
3 years ago
Polaroid’s 3d pen allows users to create 3d models. You can free draw or use the polaroid trace app to trace over stencils and b
hammer [34]

For Polaroid, the addition of the 3D pen to the U.S. market would be viewed as a <u>market development</u> strategy on product-market matrix.

<h3>What is a product-market matrix?</h3>

This refers to a business map that helps the Product Managers to map the strategic market growth of their products. This Matrix was named after Igor Ansoff, who was a a mathematician and business manager who published an essay outlining the matrix in the Harvard Business Review in 1957.

The 4 strategies of Ansoff Matrix (product-market matrix) includes:

  • market penetration
  • market development
  • product development
  • diversification.

In conclusion, the addition of the 3D pen to the U.S. market would be viewed as a market development strategy on product-market matrix.

Read more about product-market

brainly.com/question/1273826

#SPJ1

7 0
2 years ago
True or false?columbus's return voyage took longer than his outward voyage
zaharov [31]
That is false, he took a lot more time trying to find India and instead found America
7 0
3 years ago
Read 2 more answers
Other questions:
  • Stella manages the production team at Camden Inc., a manufacturer of heavy industry machinery in the United States. She needs to
    5·1 answer
  • If an automobile manufacturer discovers a potentially hazardous defect in the product, the subsequent recall of the vehicles is
    6·1 answer
  • You want $1,000,000 when you retire in 40 years. You decided to save some money every year next 40 years for your retirement. Yo
    8·1 answer
  • A European dairy that is famous for its rich ice creams has introduced basil-, tomato-, fennel-, and oregano-flavored ice creams
    8·2 answers
  • Actor Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was pr
    8·1 answer
  • Ellie is spending her entire income on goods X and Y. Her marginal utility from the last unit of X is 100 and the marginal utili
    10·1 answer
  • Sheila and her team members have been allocated a new project. As a team leader, which quality should Sheila demonstrate so that
    9·2 answers
  • Which of the following is not a characteristic of a leader
    6·2 answers
  • An increase in consumer expenditures during the holiday season, a decrease in purchases of U.S. goods by foreigners, a tax incre
    15·1 answer
  • Which would you use to estimate the demand for a product at various prices?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!