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allsm [11]
3 years ago
5

The Easton manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will resul

t in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If the firm’s cost of capital is 9%, what is the discounted payback period for this project? (Do not round intermediate computations. Round final answer to two decimal places.)
Business
1 answer:
iogann1982 [59]3 years ago
7 0

Answer:

It will take 3 years and 279 days to cover for the initial investment.

Explanation:

Giving the following information:

Initial investment= $345,000

Annual cost saving:

Cf1= $220,000

Cf2 to 4= $100,000

Discount rate= 9%

<u>The payback period is the time required to cover for the initial investment:</u>

Year 1= (220,000/1.09) - 345,000= -143,165.14

Year 2= (100,000/1.09^2) - 143,165.14= -58,997.14

Year 3= (100,000/1.09^3) - 58,997.14= 18,221.21

<u>To be more accurate:</u>

(58,997.14/77,218.35)*365= 279 days

It will take 3 years and 279 days to cover for the initial investment.

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Tito Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods So
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Most codes of ethics created by professional organizations have two main parts:________
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The correct answer is true.

It is completely true that most codes of ethics created by professional organizations have two main parts. One part outlines what the professional organization aspires to become, and the other part lists rules and principles by which members of the organization are expected to abide.

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3 years ago
2. Below are mixed SWOT factors of KFC case study. Fill the chart to Identify each SWOT factor. (2points each)
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Answer:

Strengths :

1. With over 15,000 establishments in 120 countries, KFC is an internationally recognized venue.

2. Alongside KFC, Taco Bell and Pizza Hut also share the same corporate owner brands. Brands have the influence, power, and resources to improve KFC as a restaurant.

3.  KFC became popular thanks to its good chicken

Weaknesses :

                                                             

1. Serving high-fat foods; considering how health-conscious the public is these days, greasy chicken is not going to cut it anymore.

2. KFC follows a franchise management system, meaning each one is individually managed. It is not uncommon for one KFC to have high reviews while another, just down the street, is collecting bad press.

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3 years ago
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Answer:

A. 300

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Therefore,

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