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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

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To derive the demand curve we assume that A. marginal utility is constant. B. tastes are constant. C. prices are constant. D. re
Tems11 [23]

Answer:

C. prices are constant.

Explanation:

  • A demand is the scheduling the price of all the commodity as content and is derived as the price of the goods may changes in the future as general the demand curve is downward sloping and is shown by the equilibrium prices and movement along the curve takes place when the change in price causes the quantity demanded to change.
5 0
3 years ago
Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not
Ray Of Light [21]

Answer: D) Tax Court

Explanation:

Tax court of United States is court that is made for hearing tax-related issue and problem and then judgment is made on the disputes.According to the question, Rowanda should appeal to U.S. tax court for her tax disputer with IRS so that appropriate decision can be made in legal way.

Other options are incorrect because the United state's court of Appeals, federal claim and district are not the place where tax related disputes are legally handled and heard.Thus, the correct option is option(D).

8 0
3 years ago
Many companies state their brand promise directly in words, using a short phrase called what
denpristay [2]

Answer:Many companies state their brand promise directly in words, using a short phrase called what? A. A warranty B. A customer mindset C. A corporate image D. A tagline

✓ D.

4 0
3 years ago
The Artisan Cheese Company in Florida has decided to add a new line of imported cheeses to its offering. The company president (
KonstantinChe [14]

Answer:

Cheeses from England.

Explanation:

First, let us define what Marketing Mix is:

  • This refers to the number of strategies a company employs to promote its goods and services in the market. The four Ps of the marketing mix include Product, Price, Place and Promotion.

The goal of a marketing strategy is to create awareness among the target audience.

Feedback and surveys are ways in which a company informs its marketing mix strategy. Therefore, if it has been determined from the customer feedback from company surveys and cheese tasting that the Product the customers prefer is Cheese from England, then that is what should be produced and promoted.

It cannot be over emphasized that companies are in business because of the customers, so their opinion takes precedence, as the saying goes, customer is always right. Therefore, if the need of the customer is not met, the company will make no profits.

The company president and product director will have to do what the customer wants.

4 0
3 years ago
Baker Corp. is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker's current ratio now is 3. Bak
Naddika [18.5K]

Answer:

The maximum that should be expand short time debts  and inventories is $ 1,666,667.

Explanation:

First the amount of current liabilities must be known:

Current Ratio = Current Asset / Current Liabilities  

3 = 15,000,000 / X  

X = 15,000,000 / 3

X= 5,000,000

To know how much to expand short time debts  and inventories in the formula of the current ratio, to the amount of current assets and current liabilities must add an amount such that the result is 2.5.  

(15,000,000 + x) / (5,000,000 + x) = 2.5

(15,000,000 + x) = 2.5 * (5,000,000 + x)

 15,000,000 + x = (2.5 * 5,000,000) + (2.5 x)

 15,000,000 + x = 12,500,000 + 2.5 x

 15,000,000 - 12,500,000 = 2.5 x – x

  2,500,000 / 1.5  = x

  1,666,667 = x

 So the maximum that should be expand short time debts  and inventories is $ 1,666,667.

3 0
3 years ago
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