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madam [21]
3 years ago
14

A company is considering purchasing a machine that costs $400,000 and is estimated to have no salvage value at the end of its 8-

year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. The straight-line method of depreciation would be used. The cash payback period on the machine is Question 9 options: 8.0 years. 7.5 years. 6.5 years. 3.2 years
Business
1 answer:
AveGali [126]3 years ago
4 0

Answer:

6.5 years

Explanation:

Cost of Asset/Net Income = $400,000/Net Income

Net Income = Revenue - Operating expenses (excluding depreciation)

= $100,000 - $38,000 = $62,000

=$400,000/$62,000

=6.45

=6.5 years

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Eugene agrees to finish painting Hazel’s house within two weeks of the time they agree to in the contract. A week in, Eugene rea
Yanka [14]

Answer:

Yes, Hazel needs to pay extra $700

Explanation:

As per pre-existing duty rule, a person is obligated to perform his duty at the consideration agreed upon initially. Any modification to the contract is void.

Exceptions to this rule:

  • As per new contract, if the person undertaking his duty hires another person to perform the work so as to complete it in time, then modifications are valid and enforceable.
  • Modifications are valid in case of unforeseen contingencies like war, recession, change in economic conditions and strikes.

In this case, Hazel agreed to pay $700 extra. Under pre-existing duty rule, she is not required to pay Eugene extra $700 but since Eugene took additional help exception to the rule applies and Hazel is obligated to pay $700 extra.

6 0
2 years ago
Read 2 more answers
On March​ 15, Maxwell Plush sold and shipped merchandise on account for​ $6,000 to Kittson Amusement​ Park, terms FOB shipping​
a_sh-v [17]

Answer:

(a)- Its assets will​ increase, as will its equity

Explanation:

The commercial terms state FOB shipping​ point therefore the transfer succeeds once the cargo enter the port.

The sale is thus completed. The revenue can be recognize thus, increasing the company's equity and assets.

Account receivable(+Assets)     debit

             Sales Revenue(+Equity)           credit

8 0
3 years ago
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 200 units is $4
sattari [20]

Answer:

It must shut down

Explanation:

Even at the lower average variable cost, which is 3.50 dolllar will be lossing money given a market price of 3.00 dollar

Considering is not making enough to cover the variable cost the best option is to shut down and only take a hit for the fixed cost  until it can totally exit the market. If it tries to produce it will only make thinks worse as producing generates more losses

6 0
3 years ago
in marketable securities by $318,370 and paid $1,218,231 for new fixed assets during 2017. The company also repaid $776,200 of e
sertanlavr [38]

Answer:

The complete question from the start is <em>"Carla Vista Company increased its investments in marketable securities by $318,370 and paid $1,218,231 for new fixed assets during 2017"</em>

<em />

a. <u>Investing activities</u>

+ Proceeds from sales of marketable securities  $318,370

- Purchase of new fixed assets                              $1,218,231

+ Proceeds from sale of fixed assets                    <u> $332,002</u>

Net cash used for investing activities                 <u>-$567,859</u>

Note: The answer is cash outflow

b. <u>Financing activities</u>

- Repayment of long term debt                       $776,200

+ Proceeds from raising new debt capital      $913,575

- Repurchase of stock                                      <u>$52,501</u>

Net cash inflow from financing activities     <u>$84,874</u>

Note: The answer is cash inflow

8 0
3 years ago
When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this adver
algol [13]

Answer:

The purpose of this advertising campaign was most likely to <u>get customers to try the new product</u><u>.</u>

Explanation:

Since Wink soda was a new product of Canada Dry, <u>it needed a catchy slogan to create awareness and invite customers to try out the product.</u>

The slogan "Join the cola dropouts", was one that told customers that <u>Wink soda was something different from cola, and should be given a try.</u>

5 0
3 years ago
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