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chubhunter [2.5K]
3 years ago
12

roject A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years. What is the payback period f

or this investment under the assumption that the cash inflows occur evenly throughout the year
Business
1 answer:
Elden [556K]3 years ago
6 0

Answer:

It will take 2.79 years to cover the initial investment.

Explanation:

Giving the following information:

Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years.

<u>The payback period is the time required to cover the initial investment:</u>

Year 1= 2,150 - 6,000= -3,850

Year 2= 2,150 - 3,850= -1,700

Year 3= 2,150 - 1,700= 450

<u>To be more accurate:</u>

<u></u>

(1700/2150)= 0.79

It will take 2.79 years to cover the initial investment.

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A member of the park service believes the average number of cacti per square km in tucson, az in the year 2001 is less than the
tia_tia [17]

Question Continuation

a. What is a subject in this study?

b. What is the explanatory variable and what type of variable is it?

c. Which type of test is most appropriate?

Answer:

See Explanation Below

Explanation:

a.

In research, a subject can be referred to as a person, place, thing, or phenomenon that is being measured of observed. In the question above, the observation is focused on the area of cacti/km² plot of land near Tucson, AZ; hence, it'll be taken as the research subject.

b. Explanatory variables are those variables that are not totally independent and are used to predict or explain differences in the response variable.

Having pointed what an explanatory variable is, we'll list the explanatory variable(s) in the question, using the definition above.

1. Year;

The question compares the growth of cacti per km² in 1970 and 2001. The differences in the growth are then measured in order to determine if there's indeed a growth or a decline in growth of cacti.

Hence, year is an explanatory variable and it's numerical

2. Using the same yardstick, another explanatory variable in the question above is the average number of cacti per km².

It is considered an explanatory variable because it represent the numerical value of cacti present in a km² area.

It is also numerical

c.

The most appropriate type of test in this kind of observation is the independent sample t test.

An Independent Samples t Test takes into consideration the means or averages of two independent groups and then make makes comparison between them in order to determine whether there is statistical evidence that the associated population means are significantly different.

The question compares the average of cactus in 1970 and 2001.

The keyword here is average and that is what is being described by the independent sample t test. I.e. the average of cactus per km² in both years.

5 0
3 years ago
Why teams need negotiation skills?<br>​
Vitek1552 [10]

Answer:

Negotiating a decision that the group is all happy with increases a team's cohesion and helps individual members examine their own motivations. Successful negotiation provides the team with faith in their ability to continue to co-operate with each other.

<h2>hope it helps you.</h2>
7 0
3 years ago
The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner h
charle [14.2K]

Answer: The answer is given below

Explanation:

Here , we are going to apply the present value of annuty formula.

a. Social Opportunity cost = $1.1 Million

The Yearly cash flows = $110,000

Time (n) = 20 years

The Discount rate (R) = 4%

Net benefits= Present value of cash inflows - the intial socail opportnity cost

Net benefits= Yearly cash flow × (1 - 1/(1+R)^n) / R - 1100000

Net benefits = 110000 × (1 - 1/1.04^20)/0.04 - (1100000)

= $394936

b. We will use the formula for present value of an annuity with the growth rate in benefits as 2 percent.

Firstly, dg= (0.04 - 0.02)/ (1+0.02)

= 0.01961

PV(benefits) = [($110,000)÷ (1+0.02)][1-(1+dg)-20]/dg]

= $1,770,045

NPV = $1,770,045 - $1,100,000= $670,045

7 0
3 years ago
Bradford Company had sales of $700,000 for a year. The total assets at the beginning of the year were $240,000, and the total as
11111nata11111 [884]

Answer:

Option (a) is correct.

Explanation:

Given that,

Sales = $700,000

Beginning total assets = $240,000

Ending total assets = $280,000

The asset turnover ratio refers to the ratio of sales to the average total assets.

Average total assets:

= (Beginning total assets + Ending total assets) ÷ 2

= ($240,000 + $280,000) ÷ 2

= $260,000

Therefore, the asset turnover ratio is as follows:

= Sales ÷ Average total assets

= $700,000 ÷ $260,000

= 2.69

7 0
3 years ago
Daniel is the owner of a footwear manufacturing company. To increase the production of footwear on a weekly basis, he orders his
alexandr1967 [171]

Answer:

According to the Blake/Mouton grid, Daniel falls under the produce-or-perish management style, also known as the authority compliance style  

Explanation:

This management style is very autocratic, very much a Theory X management style.

Daniel is very autocratic, has strict rules and policies. In the short run, this management style can achieve high productive results, but in the long run the low morale of the workers will end up hurting their performance. Daniel believes that his employees are just a means to an end, and that their needs are secondary and not important.

7 0
3 years ago
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