Answer:
4.2 years
Explanation:
Here is the complete question
Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.
Required:
Compute Project A's payback period.
Payback = amount invested / cash flow
cash flow = net income + depreciation
depreciation = (cost of asset - salvage value) / useful life
(385,000 - 44,000) / 5 = 68,200
Cash flow = 68,200 + $ 23,100 = 91300
$ 385,000 / 91300 =4.2
The Chester company is likely implementing a strategy called
the niche differentiation. This is the process in which helps a specific
organization or company to coexist by having to use their environment in a
different way in when they are to compete.
Answer:
The required rate of return is 12.2%
Explanation:
Dividend growth model is used to calculate the price of the stock based on the dividend, its growth and required rate of return.
Formula to calculate the price
Price = Dividend / ( Required rate of return - Growth rate )
P = D / ( r - g)
P = $11.54
D = $0.95
g = 4%
Now placing the given values in the formula
$11.54 = $0.95 / ( r - 4% )
r - 4% = $0.95 / $11.54
r - 4% = 8.2%
r = 8.2% + 4%
r = 12.2%
Answer:
estimated inventory is $395000
C is correct option
Explanation:
given data
Inventory = $300000
sales = $1300000
purchases = $875000
gross profit = 40%
to find out
estimated inventory
solution
we find estimated inventory by this formula
estimated inventory = Inventory + purchases - (100% - 40%)sale
put here all value
estimated inventory = 300000 + 875000 - (100% - 40%)1300000
estimated inventory = 300000 + 875000 - 780000
estimated inventory = 395000
so estimated inventory is $395000
C is correct option
Answer:
book value of Moss’s inventory = $388000
Explanation:
given data
year end inventory = $400,000
selling price = $408,000
costs to sell = 20,000
to find out
book value of Moss’s inventory
solution
we know that inventory value should be low the cost or net realisable cost
so here net realisable cost will be
net realisable cost = selling price - costs to sell
net realisable cost = $408,000 - $20,000
net realisable cost = $388000
so book value of Moss’s inventory will be $388000 due to lower value