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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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a company budgets production of 15,000 solar panels in july. each unit requires 4 hours of direct labor at a rate of $20 per hou
Mekhanik [1.2K]

The Labor cost = Units Produced * Direct Labor hours per Unit * Direct Labor rate per Hour is  <u>$ 1,200,000.</u>

= 15,000 * 4 * $20

= $ 1,200,000

Answer: $ 1,200,000

Production is the process of combining various tangible and intangible inputs (plans, knowledge) to produce things for consumption (outputs). It is the act of creating output, goods, or services that are of value and contribute to an individual's benefit.

An example of production is the manufacture of automobiles. A car is made up of parts. For example, rubber tires are added to a metal body to create a seat before the car leaves the assembly line. “Production is the organized activity of transforming resources into final products in the form of goods and services. The goal of production is to meet the demand for such transformed resources.

Learn more about production  here:

brainly.com/question/16755022

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5 0
1 year ago
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,29
Ierofanga [76]

Answer:

1. $2,296

2. $19.58

3. Total labor cost = Fixed cost + (variable cost × employee hour)

Explanation:

The computations are shown below:

1. The fixed cost would be

= High labor cost - (High employee hours × Variable rate per hour)

= $10,324  - (410 hours × $19.58)

= $10,324 - $8,028

= $2,296

2. Variable rate per hour = (High labor cost - low labor cost) ÷ (High employee hours - low employee hours)

= ($10,324 - $6,800) ÷ (410 hours - 230 hours)

= $3,524 ÷ 180 hours

= $19.58

3. The cost formula would be

Total labor cost = Fixed cost + (variable cost × employee hour)

                          = $2,296 + ($19.58 × employee hour)

5 0
3 years ago
Knowledge Check 01 On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exer
Westkost [7]

Answer:

$153,333

Explanation:

Calculation to determine What amount should Olympic recognize as compensation expense for 2016

Using this formula

Compensation expense =Total compensation/Vesting period

Let plug in the formula

Compensation expense=($5 x 92,000)/3 years

Compensation expense=$460,000/3 years

Compensation expense=$153,333

Therefore What amount should Olympic recognize as compensation expense for 2016 is $153,333

5 0
2 years ago
What are the practical consequences of a lack of strategic linkage between the business and the operations function? give exampl
Ivenika [448]
The practical consequences that result of lack strategic linkage between business and operations functions are it will know the organization if it is a success or a failure. The lack of linkage can also cause people trap and busy with all kinds of activities. For example, in the company, you work as a team and you have the quota but the people inside the team didn’t get the proper linkage so the team will fail the task that given to them because of lack of strategic linkage.
8 0
3 years ago
What are two things you need to maintain if you assist a person with banking and bill paying?
Anton [14]

Answer:

transaction record and a reconciliation of the transactions

An adequate bank balance and a budget.

Legal guardianship of the person and power of attorney

Your documentation as payee for the person you support and the bankbook

8 0
3 years ago
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