1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
skelet666 [1.2K]
2 years ago
11

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

You might be interested in
In title theory states what clause is unique to the mortgage?
stich3 [128]

Answer:

Since a defeasance clause conveys title upon satisfaction of the loan, these types of clauses are typically only used in title theory states where the bank holds ownership of the home until the mortgage is paid off.

8 0
2 years ago
What was the four-firm concentration ratio in the u.s. soda market in 2009?
Igoryamba
<span>the four-firm concentration ratio in the u.s. soda market in 2009 are as follows Coca cola -42.7% Pepsi - 30.8% Dr.pepper snapple group - 15.3 % Royal crown - 2.1 % From the above data we can clearly find that Coke has an uphill battle—they have huge amounts of marketing muscle, financial resources.Against Coke and Pepsi, guerrilla warfare is the only thing that might work.</span>
8 0
3 years ago
Although employee involvement and participation​ (EIP) programs are​ valuable, researchers caution that organizations should mod
Veronika [31]

Answer:

(E). local and national norms

Explanation:

Employee Involvement and Participation​ (EIP) programs are put in place by organizations to encourage inclusiveness and foster collaboration among employees in the organization.

Although such programs are valuable to the organization, the "local and national norms" or cultures, within which the organization operates, must be taken into consideration by the organization, when structuring its involvement program practices.

8 0
2 years ago
What is the distinction between free trade and fair trade?
sergey [27]

Answer:

Free trade focuses on the reductions of barriers and policies of nations.

Fair trade seeks to bring favor to the right of the worker.

Explanation:

4 0
2 years ago
The firm's tax rate is 34 percent. The firm's pre-tax cost of debt is 8 percent; the firm's debt-to-equity ratio is 3; the risk-
MAVERICK [17]

Answer:

WACC = 0.08085  or  8.085% rounded off to 8.09%

Option c is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • D, P and E represents debt, preferred stock and common equity respectively
  • r represents the cost of each component

We first need to calculate the weight of each stock. We know the basic accounting equation is,

Assets = Debt + Equity

We know the debt to equity ratio is 3. Then total assets will be,

Assets = 3 + 1

Assets = 4

Using the CAPM equation, we can calculate the cost of equity.

r = risk free rate  +  Beta  *  Market risk premium

r = 0.03  +  1.5  *  0.09

r = 0.165  or  16.5%

WACC = 3/4  *  0.08  *  (1 - 0.34)  +  1/4  *  0.165

WACC = 0.08085  or  8.085% rounded off to 8.09%

4 0
2 years ago
Other questions:
  • Nikkei Bike Parts testified before Congress defending the company against an accusation that it was dumping parts on the U.S. ma
    7·1 answer
  • Jill and Brian divided up $1900 between two investment accounts. Jill's account earns 4% interest and Brian earns 3%. If their c
    14·1 answer
  • On January 1, 20X1, Tucker Company leases equipment from Franz Inc. over three years of the equipment's five-year estimated usef
    7·1 answer
  • Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginnin
    12·1 answer
  • A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold th
    9·1 answer
  • Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the mon
    14·1 answer
  • Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was
    9·1 answer
  • The following table shows a portion of a three-year amortization schedule. A 3-year amortization schedule. The loan amount or pr
    5·1 answer
  • Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Do
    5·1 answer
  • Some consumer researchers focus on one specific trait, such as conscientiousness, that exists across a number of consumers, to p
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!