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2 years ago

Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback

Business

1 answer:

tekilochka [14]2 years ago

7 0

Answer: 2.5 years

Explanation:

The payback period of a project as the term implies, is the amount of time it takes for a project's cashflows to pay off its original outlay.

The formula is;

= Year before payback + Amount remaining/ Cashflow in year of Payback

Year 1 + 2 = 150 + 200 = $350

Amount remaining = 500 - 350 = $150

Payback period = 2 + 150/300

= 2.5 years

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Effectus [21]

Answer: $30,000

Explanation:

Sales are $800,000 and the average price is $40. Number of units sold is;

= 800,000/40

= 20,000 units

Sales $ 800,000

Less: Cost of Goods Sold ($560,000)

Gross Margin $240,000

Less : Variable Costing

Selling Expenses (20,000 units X $3.00) ($60,000)

Administrative Expenses (5% of $ 800,000) ($40,000)

Contribution Margin $140,000

Less: Fixed Cost

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Administrative Expenses ($110,000 -$40,000) ($70,000)

Net Operating Income  $30,000

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3 years ago

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Ivanshal [37]

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2 years ago

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Gala2k [10]

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3 years ago

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3 years ago

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