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Naily [24]
3 years ago
13

Compute the payback statistic for project B and decide whether the firm should accept or reject the project with the cash flows

shown as follows if the appropriate cost of capital is 12 percent and the maximum allowable payback is three years.
Time 0 1 2 3 4 5Cash
Flow -$11,000 $3,350 $4,180 $1,520 $0 $1,000
Business
1 answer:
ExtremeBDS [4]3 years ago
4 0

Answer:

The project has no payback period

it should be rejected

Explanation:

Payback period calculate the number of years it would take to recover the amount invested in a project from its cumulative cash flows.

Amount invested = -$11,000

Amounted recovered in the 1st year = -$11,000 + $3,350 = -$7650

Amounted recovered in the 2nd year = -$7650 + $4,180 = -$3470

Amounted recovered in the 3rd year =  -$3470 + $1,520 = -$1950

Amounted recovered in the 4th year = -$1950 + 0 = -$1950

Amounted recovered in the 5th year = -$1950 + $1000 = -$950

The amount invested is never recovered. the project isn't profitable and should be rejected

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BartSMP [9]

Answer:

B. Texas real estate commission

Explanation:

The Texas real estate commission is a government agency based in Texas. They are responsible for overseeing the licensing of real estate brokers and agents. They are responsible for governing the practices of real estate in Texas. They regulate organizations and individuals that in brokerage businesses. They interprete and enforce the licensing laws of real estate in Texas. They safeguard consumers/costumers in matters of real estate transactions.

3 0
3 years ago
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Why does monetary policy usually involve a streamlined inside lag?
elena55 [62]
The Federal Open Market Committee can act almost immediately.
8 0
4 years ago
In ______ feedback, the receiver provides nonevaluative information to the communicator.
umka21 [38]

In informational feedback, the receiver provides non-valuative information to the communicator.

Feedback in the context of communication refers to a reaction from the recipient that informs the communicator of the message's effectiveness and whether it needs to be amended.

Alternatively said, feedback is the message's reception by the recipient

Corrective feedback is when the receiver challenges the initial communication in response to informational feedback, which is when the receiver provides non-evaluative information to the communicator.

Reinforcing feedback occurs when the recipient expresses explicitly that she has understood the message and its goals.

Hence, in informational feedback, the receiver provides non-valuative information to the communicator.

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8 0
2 years ago
Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to s
slega [8]

Answer:

c. The response of buyers and sellers to a change in the price of bananas is strong.

Explanation:

At more elastic the demand (buyers) and supply ( sellers) curve are, greater the effect on the equilibrium quantity. As the taxes is negative for both parties:

increase sales price for the buyer (demand) the demand curve will shift down at higher elasticity

If the supply is inelastic the supplier will take the hit of the tax and but if it is elastic as well both will "fight" to move the effect to the other making the quantity decrease heavily

3 0
3 years ago
Carla Vista Enterprises buys back 600,000 shares of its stock from investors at $6.50 a share. Two years later, it reissues this
photoshop1234 [79]

Answer:

Debit to cash is $3,900,000

Explanation:

The journal entry for recording this given transaction is as follows

Cash Dr (600,000 shares × $6.50) $3,900,000

       To Additional paid in capital (600,000 shares × $0.50) $300,000

       To Treasury stock (600,000 shares × $6.00) $3,600,000

(Being the stock reissued for cash is recorded)

for recording this we debited the cash as it increased the assets and credited the treasury stock as it reduced the treasury stock balance and credited the additional paid in capital

8 0
4 years ago
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