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mamaluj [8]
3 years ago
10

Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would co

st a total of $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 240,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 45,000 Depreciation 28,500 Maintenance 30,000 173,500 Net operating income $ 66,500 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Business
1 answer:
ASHA 777 [7]3 years ago
5 0

Answer:

     a. 5 years

     b. Yes they will because the payback period is 5 years.

Explanation:

a. Payback period

First calculate the annual cash inflow:

= Net income + Depreciation

= 66,500 + 28,500

= $95,000

The investment cost was $475,000

Payback period = Investment cost / Annual cash inflow

= 475,000 / 95,000

= 5 years

b. The company will purchase the games because they have a payback period of 5 years.

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Location Score
dolphi86 [110]

Answer and Explanation:

The computation of composite score for each location is shown below:-

Composite score for A is

= 0.15 × 89 + .20 × 75 + 0.18 × 92 + 0.27 × 92 + 0.10 × 93 + 0.10 × 90

= 88.05

 Composite score for B is

= 0.15 × 78 + .20 × 93 + 0.18 × 90 + 0.27 × 93 + 0.10 × 97 + 0.10 × 96

= 90.91

Composite score for C is

= 0.15 × 84 + .20 × 98 + 0.18 × 87 + 0.27 × 82 + 0.10 × 84 + 0.10 × 95

= 87.90

Therefore for computing the composite score for each location we simply multiply weight with A location and in the same manner of A, B and C

b. The maximum composite score from A, B and C is B

8 0
4 years ago
Collier/Evans defines servicescape as "all the physical evidence a customer might use to form an impression."
Slav-nsk [51]

Answer:

Walmart

Explanation:

The serviescape of a business includes the business appereance, layout, structure, signage, and equipment.

Walmart is a retail superstore that specializes in cheap consumer goods. The layout of the Walmart, is accordingly, spacious in order to accommodate as many products as possible.

The colors blue, yellow and white dominate the sings in the store, because those are the colors of the corporate brand. In the ailes, prices are written with very large fonts so that any customer can easily read them. This has to do with the fact that Walmart has established itself as a cheap option.

The greeters at Walmart are part of the corporate culture, but also a means to prevent shoplifting.

7 0
3 years ago
_____________ architecture utilizes processes of designing, construction, operation, maintenance, and removal that have been car
nikitadnepr [17]

Answer:

_______   architecture utilizes processes of designing, construction, operation, maintenance, and removal that have been carefully planned to have the smallest footprint.

  • Green

Explanation:

  • The green architecture is also known as the green design which is such an architecture method in which we build such designs and projects that will have a minimum impact on the environment and health of the people.
  • In this approach, we use such building materials and techniques that are eco-friendly and produce less harmful wastage. We take steps to keep the air and water clean by not contaminating these resources.
  • We also take some steps to recycle the resources and as well as to keep the footprint on the environment minimum.

8 0
3 years ago
The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $14,800. The fair value of the assets is
xxMikexx [17]

Answer:

The goodwill is $9,220

Explanation:

Goodwill is the excess of purchase consideration paid to acquire a business over the fair value of net assets acquired.

Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.

Net assets=$89,600-$14,800

Net assets =$74,800

Since purchase consideration paid is $84020

Goodwill=$84,020-$74800

Goodwill=$9,220

The goodwill of $9220  represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.

6 0
3 years ago
Which of the following should employers do to actively prevent workplace hazards? A. Completely eliminate all possible hazards.
wlad13 [49]
Your answer is D hope this helps
4 0
3 years ago
Read 2 more answers
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