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
8090 [49]
3 years ago
14

Using payback to make capital investment decisions

Business
1 answer:
Romashka-Z-Leto [24]3 years ago
5 0

Answer: Henry should purchase this plant as it pays back in less than the 6 years it will have to be replaced in.

Payback period = 3.7 years

Explanation:

Payback period is a capital budgeting strategy that shows how long it will take for cash inflow to pay off the original investment.

The formula is;

= Year before payback + Cashflow remaining till payback/ Cash inflow in year of Payback

Year before payback

= 1,200,000/ 325,000

= 3.69

= 3 years

Cashflow remaining

= 1,2000,000 - (325,000 * 3)

= $225,000

= Year before payback + Cashflow remaining till payback/ Cash inflow in year of Payback

= 3 + 225,000/325,000

= 3.69

= 3.7 years

You might be interested in
What is the capital of the u.s?
Anna71 [15]
The capital of US is Washington,DC
7 0
4 years ago
Read 2 more answers
Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms
-Dominant- [34]

Answer:

Regional Production

Explanation:

Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.

7 0
3 years ago
The production sector would NOT include Group of answer choices a Florida orange grove a California wine grower a meat packing p
julsineya [31]

Answer: Meat packing plant

Explanation:

The options to the question are:

A. California wine grower

B. meat packing plant

C. horticultural nursery

D. Florida orange grove

E. none of the above

Of all the options given in the question, the correct answer is meat packing plant. It should be noted that the meat packaging plant will not be part of the production sector due to the fact that no productive activities are taking place, it only involves in services.

7 0
4 years ago
Maria is purchasing a new car whose MSRP is $22,450. She is trading in her old car for $7000 and being upgraded to a premium pac
kupik [55]
It should be $20,150
5 0
4 years ago
Read 2 more answers
Remington Arms is investigating its capacity to exploit new markets. Specfically, the firm is critically evaluating its availabl
zhuklara [117]

Answer: Critical resources

Explanation:

The critical resources are the types of resources that are only used for one time when the schedule gets increased and it basically refers to the time when the resources become overloaded.

According to the question, the Remington arms basically analyzing its specific capacity for exploiting the various types of new products and the services in the market.

In this process, the organization is typically evaluating its available capital in an organization and the various types of technical and the management expertise.

Therefore, Critical resources is the correct answer.

6 0
4 years ago
Other questions:
  • Domino’s Pizza has been in business more than 50 years and claims to be "#1 Worldwide in Pizza Delivery" with over 13,000 locati
    15·1 answer
  • Personal finance chapter 5. A Cerificate of desposit will often result in a penalty for withdrawing funds beofre the maturityy d
    14·1 answer
  • "Convergence occurs as ________ is sought, such as for the EC countries, and as competitive pressures in free-trade zones, such
    15·1 answer
  • DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offerin
    13·1 answer
  • A store has issued two different coupons for its customers to use. One coupon gives customers $20 off their purchase price, and
    12·1 answer
  • ​Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $ 750 comma 000 and $ 550 c
    6·1 answer
  • Different from aggregate planning, Master Production Schedule (MPS) shows detailed disaggregation of the aggregate production pl
    13·1 answer
  • It is important to know your own strengths and weakness. Please select the best answer from the choices provided T F.
    11·1 answer
  • Before going on his first business trip to China, Albert asked his Chinese American friend to advise him on customs and values c
    14·1 answer
  • when a firm with market power produces less than the socially efficient level of output, there would be to society of producing
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!