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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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Which of the following statements is TRUE of payback​ period? A. If the payback period is greater than the maximum acceptable pa
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For example if a project costs $10,000. It cash flows in year 1,2,3 and 4 are $5000, $3000, $2000, $6000. The payback period is 3 years. If the company has a maximum acceptable payback period of 2 years, then the company won't take on the project because its payback period is more than the maximum acceptable payback period.

If the company has a maximum acceptable payback period of 4 years, then the company would take on the project because its payback period is less than the maximum acceptable payback period.

7 0
3 years ago
Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
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Is it 50 hours in a day ?
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50*7=350 days.

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Suppose that there are 1 million federal workers at the lowest level of the federal bureaucracy and that above them there are mu
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Answer:

The answers are:

A) 100,000 layer 1 supervisors; 10,000 layer 2 supervisors; 1,000 layer 3 supervisors; 100 layer 4 supervisors; 10 layer 5 supervisors; and 1 President

B) Including the President there are 111,111 supervisors

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E)Almost 10%, the actual number is 9.999991%

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The federal bureaucratic pyramid would be like this:

Layer 6 supervisor:                                                   1 president

Layer 5 supervisors:                                               10 people

Layer 4 supervisors:                                             100 people

Layer 3 supervisors:                                          1,000 people

Layer 2 supervisors:                                       10,000 people

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