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
AlexFokin [52]
3 years ago
9

An investment project provides cash inflows of $1,225 per year for eight years. a. What is the project payback period if the ini

tial cost is $4,000
Business
1 answer:
kati45 [8]3 years ago
3 0

Answer:

Project Payback Period = 3.27 years

Explanation:

Cash inflow = $1,225

n= 8

Initial cost= $4,000

Project payback = ?

Year   Cash Flow Cumulative Cash Flow

0          -4000                -4000

1            1225                 -2775

2           1225                  -1550

3            1225                  -325

4            1225                   900

5             1225                   2125

6             1225                   3350

7              1225                   4575

8              1225                   5800

Total = $5800

Payback Period = 3 years + 325/1225  

=3.27 years  

Payback period is the length of time required for an investment to recover its initial outlay. In this case, it took 3.27 years to recover the initial cost of $1,225.

You might be interested in
A history is an interview of the patient that includes the following elements:
slega [8]

Answer:

b. HPI, ROS, and PFSH is the answer.

8 0
2 years ago
Read 2 more answers
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
KiRa [710]

Answer:

Explanation:

Calculation for 5th year dividend.

Year Dividend Growth Dividend

1 1.23 1.18 1.45

2 1.45 1.18 1.71

3 1.71 1.18 2.02

4 2.02 1.18 2.38

5 2.38 1.18 2.81

Now we find EPS for 5th year through payout ratio.

EPS5 = D5 / Payout ratio

EPS5 = $2.81 / 0.30

EPS5 = $9.37

Calculation for price.

P0 = Benchmark PE ratio x EPS5

P0 = 18 ($9.37)

P0 = $168.66

B. What is the stock price today.

Year Dividend Table value at 14% PV of dividend

1 1.45 0.8771 1.27

2 1.71 0.7694 1.32

3 2.02 0.6749 1.36

4 2.38 0.5920 1.41

5 171.47 0.5193 89.04

Total 94.40

Stock price today = $94.40

6 0
3 years ago
Read 2 more answers
Q 7.39: In a small-town retail store, the sales clerk is responsible for counting the cash in the cash register and comparing it
denis23 [38]

Answer: b.segregation of duties

Explanation:

Segregation of duties as an internal control ensures that there are multiple people doing activities that if left to one person can leave the company at the risk of fraudulent activity. It also helps to reduce the incidence of errors in reporting because more than one person will be cross-checking transactions.

There should be more segregation of duties in this small-town retail store. For instance, the sales clerk should not be responsible for both the counting and comparison to the cash register tape because they could have omitted sales from the machine and then simply taken the money from the cash when counting. A different person should count the cash to see if it tallies with the cash register tape.

5 0
3 years ago
Gerome Houser is a pastry chef at McKay’s Eatery. His annual salary is $45,623. His benefits include $1,755 for two weeks of vac
alexgriva [62]
First, we add up all the benefits that Gerome Houser gets from his job. That is,
                       $1,755 + $3,898 + $2,898 +$2,098 +$1,404 = $12,053
Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer. 
                        ($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%. 
5 0
3 years ago
Your first job is to settle the dispute between the owners. To settle the dispute, you need to ensure that both owners understan
Aneli [31]

Answer:

Inelastic: Demand for business goods tends to be me more inelastic than demand for consumer goods.

Explanation:

I already did this before. ur welcome

4 0
2 years ago
Other questions:
  • a) what does it take, exactly, for a worker to earn a wage? b) how is interest income earned? c) how is ‘capital gain’ income ea
    7·1 answer
  • How has culture affected technology?
    15·1 answer
  • ___________statutes exist to protect, as an example, medical personnel who volunteer their services in emergency situations. -sh
    6·1 answer
  • _____ signs tell you how to drive safely in work zones.
    12·1 answer
  • Help thanks yo *************************
    14·2 answers
  • Co. is considering acquiring a manufacturing plant. The purchase price is $ 1 comma 100 comma 000. The owners believe the plant
    15·1 answer
  • Your firm is considering the purchase of a new office phone system. You can either pay $ 32 comma 500 ​now, or $ 900 per month f
    10·1 answer
  • Where do banks get money to lend to borrowers??​
    5·2 answers
  • When is the bath and body works semi annual sale end in 2021
    13·1 answer
  • The difference between total revenue and total cost is
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!