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AlexFokin [52]
2 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]2 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.

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Explanation:

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Therefore, the stock of Eye Remember Enterprises would give Clara a stable long-term investment because the standard deviation of its prices of $1.05 is lower than $9.65 which is the standard deviation of stock prices of Masterful Pocket Watches.

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netineya [11]
The answer is: the bottom line
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3 0
3 years ago
"New York City is issuing $500,000,000 of general obligation bonds paying interest on January 1st and July 1st of each year unti
poizon [28]

Answer:

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Explanation:

The interest is to be paid semi-annually which means that it accrues for 6 months. However, the bond was issued on May 1, 2020 which is 8 months before the first interest payment on January 1, 2021 so the January payment will have to cover for those months as interest starts to build immediately the bond is purchased.

The second payment on July 1, 2021 will cover the period of 6 months between January 1 and July 1, 2021.

8 0
3 years ago
This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate of Deposit.She recognized a
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Answer:

a) salary $112,000

Interest income $2,200

Capital gain on stock -

gross income $114,200

capital gains and losses

capital gain 10,500

capital loss 15,300

Net capital loss = 4800

net loss offset on Gross income = 3000

Net Gross income $111,200

capital loss that is carried forward = $1800

b) salary $112,000

Interest income $2,200

Capital gain on stock -

gross income $114,200

CAPITAL LOSSES/GAINS

capital gain 16000

capital loss 15300

Net Capital gain = 700  

ADD taxable capital gains on Gross income

c) salary $112,000

Interest income $2,200

gross income $114,200

capital losses/ gains

capital loss 15300

capital loss 17000

Total Capital LOSS = $ 32300

Set off against income = (3000)

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Explanation:

Capital losses can be offset on normal Gross income but only up to $3000 per year

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