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arlik [135]
3 years ago
6

Below are the expected afterminustax cash flows for Projects Y and Z. Both projects have an initial cash outlay of​ $20,000 and

a required rate of return of​ 17%.
Project Y Project Z
Year 1 ​$12,000 ​$10,000
Year 2 ​$8,000 ​$10,000
Year 3 ​$6,000 0
Year 4 ​$2,000 0
Year 5 ​$2,000 0
Required:
a. Discounted payback periods for projects Y and Z are ___________.

Business
2 answers:
Alexus [3.1K]3 years ago
5 0

Answer:

Project Y = -$1,825.80

Project Z = $4,148.00

Explanation:

Calculation are as attached in the file

Dimas [21]3 years ago
3 0

Answer:

4.72 years

0 years (The amount invested isn't recovered)

Explanation:

Discounted payback calculates how long it takes the amount invested in a project to be recovered from the cumulative cash flows .

For project Y, the discounted cash flows are:

Year 1 = 10,256.41

Year 2 = 4,269.20

Year 3 = 3,746.22

Year 4 = 1,067.30

Year 5 = 912.22

In year 1, 20,000 - 10,256.41 = 9,743.59 is recovered

In year 2 , 9,743.59 - 4,269.20 = 5,474.39

In year 3, 5,474.39 - 3,746.22 = 1,728.17

In year 4 , 1,728.17 - 1,067.30 = 660.87

In year 5 , 660.87 / 912.22 = 0.72

It takes 4.72 years For the amount invested to be recovered.

For project Z, the discounted cash flows are:

In year 1 = 8,547.01

In year 2 = 7,305.14

Total discounted cash flows is 15,852.15

The amount invested isn't recovered

I hope my answer helps you

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TEA [102]

Answer:

True

Explanation:

An increase in the cost of production would cause some producers to stop production, supply would fall and the supply curve would shift to the left.

I hope my answer helps you

4 0
3 years ago
Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses
Lelu [443]

Answer:

There are several ways to compute the degree of operating leverage (DOL). A fairly intuitive approach is expressed below.

DOL = (sales - variable costs) / (sales - variable costs - fixed costs)

For Kendall, the DOL is computed as follows:

DOL = (1,000 * $60 - 1,000 * $60 * .30) / (1,000 * $60 - 1,000 * $60 * .30 - $30,000) = 3.5

<em>hope this helps</em>

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8 0
3 years ago
Anthony was employed as a forklift operator for Blackburn Construction Company. While on the job, he operated the forklift in a
QveST [7]

Answer:

Option A

Explanation:

6 0
3 years ago
Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs associated with the equipment
user100 [1]

Answer:

The cost recorded for the equipment=$66,500

Explanation:

When dealing with the total cost of an equipment we take the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;

T=P+A

where;

T=total cost

P=purchase cost

A=additional costs(transportation cost+sales tax+installation cost)

In our case;

T=unknown

P=$60,000

A=(1,000+3,000+2,500)=$6,500

replacing;

T=60,000+6,500=66,500

The total cost=$66,500

The cost recorded for the equipment=$66,500

4 0
3 years ago
That afternoon, you meet with the owners privately to discuss the data you received. Which of the factors analyzed do you think
Kazeer [188]

Answer:

From the information from the remaining part of the question. The factor that would affect the success or failure of Caffè Gustoso is the Cultural factor.

Explanation:

Caffè Gustoso an Italian word meaning "Tasty coffee". This tells us that the firm is in the food and beverage industry.

Each of the countries mentioned are found in different continents having diverse cultures.

Key to their success is to know the culture of these countries as regards to coffee.

4 0
2 years ago
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