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Kisachek [45]
3 years ago
6

It will cost $2,500 to acquire an ice cream cart. Cart sales are expected to be $1,500 a year for three years. After the three y

ears, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. What is the payback period?
Business
1 answer:
Dvinal [7]3 years ago
3 0

Answer: 1 year and 6 months

Explanation:

The cash flows are as follows,

Year 0 = ($2,500)

Year 1 = $1,500

Year 2 = $1,500

Year 3 = $1,500

Payback period is the time it will take to break even the intial investment (In this question the initial investment is $2,500)

The sum of the cashflows of year1 and year2 is equal to $3,000

which means that the payback period is somewhere bbetween year 1 and year2

1500/3000 = 0.5 year or 6 months

the total payback period is 1 year and 6 months

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The highest level of LEED certification is _________.
shepuryov [24]
A. Platinum 

Hope this helps.
4 0
3 years ago
Juxipi Inc. is well known for having a stronger credit score than its competitors. that is why, buyers are more willing to buy p
rewona [7]

Answer:

d. Commercial paper

Explanation:

-Short-term bank loans is a loan that has to be paid back in a year.

-Factoring is when a company sells its accounts receivable to another company at a cheaper price.

-Trade credit is a credit that a supplier gives to its clients to make the payments later.

-Commercial paper is a promissory note used by companies to get money to cover short-term liabilities and has a period of time of up to a year.  

According to this, the answer us that the short-term financing option that is being offered by Juxipi Inc. in the given scenario is commercial paper.

4 0
3 years ago
During fiscal year 2019, Magic Kingdom had sales of $2 million. Its cost of goods sold, selling and general administrative expen
guajiro [1.7K]

Answer:

$300,000  

Explanation:

The computation of the operating cash flow is shown below:

But before that EBIT should be determined

Sales $ 2,000,000.00  

Less : Cost of Goods Sold $1,200,000.00  

Gross Profit    $800,000.00  

Less:  selling and general administrative expenses $500,000.00  

Less: Depreciation expense $900,000.00  

EBIT i.e. Operating Income/(Loss) $(600,000.00)  

Tax at 21% $(126,000.00)

Since it is negative so the tax loss would not be determined  

Now Operating Cash flow

= EBIT × (1 -T) + Depreciation expense - Chane in Working Capital  

= EBIT + Depreciation expense

= -$600,000 + $900,000

= $300,000  

7 0
3 years ago
A company set-up a petty cash fund with $800. The disbursements are as follows:
Radda [10]

Answer:

Petty Cash

Explanation:

The fundamental principle of accounting is credit the giver and debit the receiver. In this instance petty cash is giving out money to Office Supplies, Shipping, Postage and Delivery expense

7 0
3 years ago
Yield management pricing is ______. Multiple choice question. setting a price a few cents or a few dollars below an even number
charle [14.2K]

Answer:

a complex approach that continually matches demand and supply to customize the price for a service.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

One of the importance associated with the pricing of products is that, it improves the image of a business firm.

Yield management pricing is a complex approach that continually matches demand and supply to customize the price for a service. It is commonly used by businesses that are typically involved in tourism, hospitality, and airline services.

8 0
3 years ago
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