All categories

2 years ago

A machine can be purchased for $60,000 and used for five years, yielding the following net incomes. In projecting net incomes,

Business

1 answer:

Mrrafil [7]2 years ago

5 0

Answer:

2.505 Years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

cash flow = ne income + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

60,000 / 5 = $12,000

Cash flows :

Year 1 = 15900

Year 2 = 21900

Year 3 = 44,000

Amount recovered in year 1 = $-60,000 + 15900 = -44,100

Amount recovered in year 2 = -44,100 + 21900 = -22.200

Amount recovered in year 3 = - 22,200 + 44,000 = 21800

payback = 2 years + 22,200 /44,000 = 2.505 years

You might be interested in

Last quarter, a retailer sold 8,000 T-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________

Lady bird [3.3K]

This retailer's Fill rate was 88 percent.

Fill rate, also called order fulfillment fee, is the percentage of orders that you could ship from your to-be-had inventory with no misplaced sales, backorders, or stockouts. it is a very good mirrored image of your potential to meet purchaser calls and the overall effectiveness of your eCommerce operations.

The fill rate formula is simple. You divide the range of purchaser orders shipped in full through the number of patron orders positioned. whilst you multiply that number by 100, you'll study your fill price in the form of a percent.

Fill rate refers to the share of consumer calls that is met via on-the-spot inventory availability, without backorders, stockouts, or lost income. without a doubt positioned, it's an indication of how nicely you are able to meet patron calls at any given time.

Learn more about the Fill rate here: brainly.com/question/25793394

#SPJ4

5 0

1 year ago

On November 1, 2018, ABC signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six mo

Kryger [21]

Answer:

ABC

In recording the payment of the note plus accrued interest at maturity on May 1, 2019, ABC would: __________

Journal Entries:

May 1, 2019:

Debit Interest Payable $1,000

Debit Interest Expense $2,000

Debit Notes Payable $100,000

Credit Cash $103,000

To record the payment of the note plus accrued interest at maturity.

Explanation:

a) Data and Calculations:

November 1, 2018:

6% 6-month Note Payable = $100,000

December 31, 2018:

Accrued interest = $1,000 ($100,000 * 6% * 2/12) for 2 months

May 1, 2019:

Interest Expense = $2,000 ($100,000 * 6% * 4/12) for 4 months

Transaction Analysis on May 1, 2019:

Interest Payable $1,000 Interest Expense $2,000 6% Notes Payable $100,000 Cash $103,000

6 0

2 years ago

Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on

Vanyuwa [196]

Answer and Explanation:

Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.
Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.

So that it is the right answer.

5 0

2 years ago

Masterson, Inc., has 4.4 million shares of common stock outstanding. The current share price is $89.50, and the book value per s

valentinak56 [21]

Answer:

Masterson, Inc.

1. The company's capital structure weights on a book value basis are:

Book Value Weights:

Equity = 0.27 or 27%

Debts = 0.73 0r 73%

2. The company's capital structure weights on market value basis are:

Market Value Weights:

Equity = 0.75 or 75%

Debts = 0.25 or 25%

3. The market value weights of Masterson's common stock and debts are more relevant because they represent a more current valuation of the equity and the debts. It is easier to calculate the book value weights since the information is more readily available within the entity than the information on market weights.

Explanation:

a) Data and Calculations:

Equity Units Total Value

Outstanding common stock 4.4 million shares

Current share price $89.50 $393.8 million

Book value per share $11.25 $49.5 million

Debt Units Total Value

First bond:

Face value 81,000 $81 million

Market value 81,000 $78.165 million

Coupon rate = 5.1% $4.131 million p.a.

Second bond:

Face value 53,000 $53 million

Market value 53,000 $54.445 million

Coupon rate = 5.3% $2,809 million p.a.

Total book value of bonds 134,000 $134 million

Total market value of bonds 134,000 $132.61 million

Capital structure Equity Bonds Total

Book value $49.5 million $134 million $183.5 million

Market value $393.8 million $132.61 million $526.41 million

Book Value Weights:

Equity = $49.5/$183.5 = 0.27 or 27%

Debts = $134/$183.5 = 0.73 0r 73%

Market Value Weights:

Equity = $393.8/$526.41 = 0.75 or 75%

Debts = $132.61/$526.41 = 0.25 or 25%

3 0

2 years ago

at the end of 2018, river plate builders had two jobs still in process with a total balance of $132,200. what overhead rate is r

Ksju [112]

Answer: d. 80% of direct material cost

Explanation:

Overhead cost = Total costs - Direct material - Direct labor

= 132,200 - 25,000 - 32,000 - 12,500 - 17,100

= $45,600

Direct materials cost = 32,000 + 25,000

= $57,000

Percentage of Direct materials = Overhead/ Direct materials

= 45,600/57,000

= 80%

8 0

2 years ago