Answer:
straight land contract
Explanation:
Based on the information provided within the question it can be said that the type of contract that is being illustrated in this scenario is a straight land contract. This is a contract where the interest cannot be overrided and payments are not specific, meaning that you can go paying the contract off little by little but the interest will adjust accordingly.
Answer:
$318,240
Explanation:
Calculation to determine How much will the company pay in separation costs if these exit interviews are implemented next year
First step is to calculate the Seperation cost per employee
Seperation cost per employee=$5,000+$100
Seperation cost per employee=$5,100
Now let calculate How much will the company pay in separation costs
Total cost =(624*10%)*$5,100
Total cost =62.4*$5,100
Total cost =$318,240
Note that the Total Employee of 624 was given in Complement
Therefore The amount that the company will pay in separation costs if these exit interviews are implemented next year is $318,240
Correct option is A
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Answer:
3 years
Explanation:
Since the income tax is ignored, so the operating cash flows would be
= EBIT + Depreciation - Income tax expense
= $105,000 + $45,000 - $0
= $150,000
The operating cash flows are same for ten years
And, the initial investment is $450,000
So, the payback period would be
= Initial investment ÷ Net cash flows
= $450,000 ÷ $150,000
= 3 years