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liraira [26]
2 years ago
8

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of . The company u

ses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.
Required:
Compute Project A's payback period.
Business
1 answer:
Papessa [141]2 years ago
6 0

Answer:

4.2 years

Explanation:

Here is the complete question

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.

Required:

Compute Project A's payback period.

Payback = amount invested / cash flow

cash flow = net income + depreciation

depreciation = (cost of asset - salvage value) / useful life

(385,000 - 44,000) / 5 = 68,200

Cash flow = 68,200 + $ 23,100 = 91300

$ 385,000 / 91300 =4.2

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3 0
3 years ago
insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is a(n) ________blan
Semenov [28]

Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is an unsought product that consumers don't normally think about much.

<h3>What are unsought products?</h3>

Although a buyer may feel pressured into purchasing a product they do not want, unsought commodities are frequently bought under certain circumstances, so a marketing strategy that harasses consumers into purchasing the product will be seen as immoral. A notable example of an unasked-for good is funeral services.

Unsought goods are those that consumers are unaware of or hardly ever think about purchasing and whose acquisition is motivated by a combination of risk or worry about harm and lack of desire. Examples of well-known but unpopular things are funeral services, encyclopedias, fire extinguishers, and reference books.

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7 0
1 year ago
The Best Company is reviewing two options for replacing a piece of machinery. The first machine costs $100,230 and has a four-ye
andriy [413]

Answer:

Equivalent annual cost method

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6 0
3 years ago
Products that the consumer does not know about or knows about but does not initially want are referred to as
marin [14]
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8 0
2 years ago
Which of the following distribution systems offers speed and reliability when emergency supplies are needed overseas?A. railroad
erik [133]
<h3>Hello there!</h3>

Your question asks which is a fast and reliable source for emergency supplies that are needed overseas.

<h3>Answer: B). Airfreight</h3>

The reason why answer choice "B). Airfreight" is the correct answer because this is the distribution system that is the quickest to get things overseas.

When you think about going overseas, what do you use? A plane. When you think about going somewhere international, what do you use? A plane. That is the same concept when you're sending things overseas, you would use some sort of air craft to get it overseas.

An airfreight is a really big air craft that can transport tons and tons of supplies, items, etc. An airfreight can go over the ocean and to its destination very quickly. The plane can go hundreds and hundreds of miles per hour for a long period of time. This is why people would use an air freight to deliver emergency supplies overseas.

<h3>Why the other answer choices are incorrect:</h3>

Answer choice "A). railroads" is incorrect because railroads can't go overseas. Have you seen railroads built over the ocean? Absolutely not. Therefore, trains can't go over the ocean because there's no railroads built over the ocean. This is why this answer choice is incorrect.

Answer choice "C). trucking" is incorrect because there is no road over the ocean, therefore the travel path would be cut off for the trucks. In order for the trucks to go overseas, they would need to be transported on a boat, in which would take a long time. This is why this answer choice is incorrect.

Answer choice "D). pipelines" is incorrect because pipelines don't extend to places that are overseas, and pipelines would not be a safe thing to use to get emergency equipment distributed. This is why this answer choice is incorrect.

Answer choice "E). waterways" is incorrect because water ways are just water, large bodies of water to be exact. There is no transportation system in waterways, therefore making this answer choice incorrect.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
3 0
3 years ago
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