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
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

You might be interested in
What are the paper bills and coins that a country actually circulates called?
fiasKO [112]


currency? or money. It seems quite vague. Each country calls its currency in various ways.

3 0
3 years ago
Read 2 more answers
Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce
Yuliya22 [10]

Answer:

A. $125

(Supplies + Electricity)

B. $10,300

(Salary lost + Rent amount lost)

C. $10,425

(Add them together)

4 0
3 years ago
What is the earliest and latest patent found on a spork design
bezimeni [28]

the earliest is the year the year 2018 and the first time one was invented was 1804! crazy huh it is really funny tho... hope this helps!


7 0
3 years ago
ano sa inyong palagay Ang kalakal na dapat maging pyrirodad ng produksyon ng acting ekonimiya ? ipaliwanag Kung bakit​
Ksenya-84 [330]

Answer:

huh?what?

Explanation:

thannnnkkkkks for points

6 0
3 years ago
Please show all work in excelGreat Lakes Shipping is an all-equity firm with anticipated earnings before interest and taxes of $
padilas [110]

Answer:

$2,163,171

Explanation:

We use the MM model with taxes to evaluate a firm with financial leverage

V_l = V_u + t \times D\\$Where:\\V_l = $value of the levered firm\\Vu = value of unlevered firm\\D = debt of thee firm\\t = tax rate

D x t = 1,250,000 x 0.36 = 450,000

<u />

<u>Now we calcualte the value of the firm without financial leverage:</u>

The unlevered firm will produce 439,000

It pays taxes for 36% and no interest expense so his net income will be

439,000 x ( 1 - 0.36) = 280,96‬0

then we calculate using the cost of equity the value of the firm usng the perpetuity formula:

280,960/.164 = 1,713,170.73 = 1,713,171

Now we add the debt tax shield to calculate the firm value with leverage

1,713,171 + 450,000 = 2,163,171

6 0
3 years ago
Other questions:
  • On june 8, alton co. issued an $90,000, 6%, 120-day note payable to seller co. assuming a 360-day year for your calculations, wh
    10·1 answer
  • 1. When the Fed sells bonds in open-market operations, it _____________ the money supply.
    6·1 answer
  • A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to b
    12·1 answer
  • Chillco Corporation produces containers of frozen food. During April, Chillco produced 790 cases of food and incurred the follow
    15·1 answer
  • The Brights are buying a home from the Stones. They are splitting the escrow service fees 50-50. Do they live in Northern or Sou
    10·1 answer
  • A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.
    8·1 answer
  • Batman parked the Batmobile himself and kept the bat keys. There was no attendant at the lot. Two hours later, Batman left the r
    7·1 answer
  • The general rule for using the weighted average cost of capital (WACC) in capital budgeting decisions is to accept all projects
    13·1 answer
  • Which stage of the money laundering process occurs when funds gained from criminal activity enter the financial institution?.
    13·1 answer
  • 2. How could you assess whether new office designs are improving the organizational culture
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!