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VladimirAG [237]
3 years ago
6

An investment project costs $10,000 and has annual cash flows of $2,830 for six years. a. What is the discounted payback period

if the discount rate is 0 percent
Business
1 answer:
Tanya [424]3 years ago
3 0

Answer:

The payback period is 3.53 years.

Explanation:

The cost of investment project = $10000

The annual cash flows = $2830

Time period = 6 years

Since cost of project, annual cash flow and time period is given so we are required to calculate the discounted payback period when there is 0 % discount rate.

Payback period = Initial project cost / annual cash flow

= 10000 / 2830

=3.5335

= 3.53 years

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The terms are default, grace period, late payment fee, over the limit fee, and bad credit
trapecia [35]

Answer:

1. Bad credit

2. Over the limit fee

3. Late payment fee

Explanation:

1. Bad credit is a situation where a borrower fails to repay his bills on time. This can have an effect on his credit score, thus resulting in a bad credit score and the inability of lenders to lend money. This explains John's situation because he fails to pay on time.

2. Over the limit fee is charged when a person's balance exceeds his credit limit and this can result in a decline of transaction. Susan has apparently exceeded her limit and her transaction might be declined or the balance might be deducted when she pays the fee.

3. Late payment fee is charged when a person fails to complete his payment on the due date. Interest is being charged after the purchase which he pays at a later time because he failed to read the conditions of the credit card offer.

4 0
3 years ago
Synovec Corp., which just paid $1.0 dividends per share, is experiencing rapid growth. Dividends are expected to grow at 30 perc
Valentin [98]

Answer:

$54.44

Explanation:

This is the stock of the company that is expected to have multiple growth stages.

In the first phase, company is expted to grow 30% per year, so dividend paid from Year 1 to Year 3 are D_1 = 1.0 x (1 + 30%); D_2 = 1.0 x (1 + 30%)^2 and D_3 = 1.0 x (1 + 30%)^3 respectively.

Dividend in Year 4 is D_4 = D_3 x (1 + 18%).

Dividend in Year 5 is D_5 = D_4 x (1 + 8%).

Terminal value in at Year 4 is T_4 = D_5/(Discount rate - Long-tern growth)

Value of this stock is discounted relevant cashflow from Year 1 to Year 4 (include terminal value).

Putting all the number together, we have intrinsic value of the stock = $54.44

7 0
4 years ago
Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to
Leokris [45]

Solution :

Number of days = 90 days

Amount invested = $45 million

So the current earnings is $\$45 \text{  million }  \times 1.075 \text{  in}\ \ 90 \text{  days}$

The number of days is reduced to 50 days. So we can now make the same amount in just 50 days.

So the net increase is what we will make in the remaining 40 days.

If in 50 days, we earn 0.075 return, then we can consider 50 days as t=1.

Then the 50 days = 45 \times 0.075^1  return, and

40 days = 45 \times (0.075)^{40/50}

             =45 \times (0.075)^{4/5}

              = \$ 5.66580371 million increase

              = $ 5.7 million

6 0
3 years ago
Rt a you are the lucky student of a wacky professor who develops a time machine. he asks if you will test it with him. you get i
Liono4ka [1.6K]
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3 years ago
Employees benfit and service​
lesya [120]

Explanation:

Medicare and social security contributions. ...

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Minimum wage and overtime pay. ...

Health insurance. ...

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3 years ago
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