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kakasveta [241]
3 years ago
5

Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipmen

t is expected to produce annual net income of $90,000 over its useful life. Depreciation expense, using the straight-line rate, is $140,000 per year.
Instructions:
Compute the cash payback period.
Business
1 answer:
ivolga24 [154]3 years ago
6 0

Answer:

the cash payback period is 6.09 years

Explanation:

The computation of the cash payback period is shown below:

= Initial Investment  ÷ Net annual cash inflow

= $1,400,000 ÷ $230,000

= 6.09

Now the net annual cash flow is  

. Net operating income $90,000.00

Add: Depreciation   $140,000.00

Net annual cash inflow   $230,000.00

Hence, the cash payback period is 6.09 years

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The correct option is A.
Home inspection refers to the examination of the condition of a home prior to buying. Home inspections are usually conducted by professional home inspectors who had been trained on that field. The law demands that a property should be inspected prior to buying and selling of that property. Home inspection is done purposely to identify any problem that might be associated with the property.
8 0
3 years ago
Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000
hram777 [196]

Answer:

do not Install guard rail because the guard rail cost exceed the expected benefits

Explanation:

given data

guard rail cost = $70,000

average damage = $10,000

guard rail  prevent = 5 vehicles

to find out

What should the county do

solution

we know here guard rail cost  is  $70,000

but expected benefits = $10,000 × 5

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so we can say that do not Install guard rail because the guard rail cost exceed the expected benefits

5 0
3 years ago
What can a manager improve by utilizing the information captured in recent incident reports?
gladu [14]

I believe the answer is: house policies

House policies refers to the set of principles that the managers implemented as a basis for the strategies that they would make in the future.

Recent incident reports would usually filled with information regarding the productivity and defects of the plan that currently carried out. from this, the managers could formulate the necessary adjustments which ensure that the organization is still on track.

4 0
3 years ago
Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose toda
polet [3.4K]

Answer:

1) The yield to maturity is required rate of return on a bond expressed as a nominal annual interest rate. For noncallable bonds, the yield to maturity and required rate of returns are interchangeable terms

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3) The coupon rate is constant at 10%. The YTM is 8%.

Explanation:

5 0
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Answer:

4

1

3

2

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The big 5 personality traits include

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Betty is high on this trait  

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3 0
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