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
Novosadov [1.4K]
3 years ago
11

A project has an initial cost of $6,500. the cash inflows are $900, $2,200, $3,600, and $4,100 over the next four years, respect

ively. what is the payback period?

Business
1 answer:
kkurt [141]3 years ago
8 0

Pay Back Period is a capital budgeting technique which shows the period at which the initial investment is returned in a project.

Payback Period = A + (B ÷ C)

In the above formula,

A is the last period with a negative cumulative cash flow = 2 Years;

B is the absolute value of cumulative cash flow at the end of the period A = $3,400;

C is the total cash flow during the period after A = $3,600

Payback period = 2 + ( $3,400 ÷ $3,600)

= 2 + 0.9444

= 2.944 years

Therefore, the payback period is 2.944 years.

*Note: The image attach shows the calculation of Cumulative cash flows)

You might be interested in
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP
aliina [53]

Answer:

(a.) The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. – <em><u>This will fall under the category of Government Spending(G)</u></em>

Reason: In this case the government is utilizing money in order to construct highway that will benefit public.

(b.) Musashi buys a sweater made in Guatemala –<em><u>This will fall under the category of imports(M)</u></em>

Reason: The product/commodity is being produced outside domestic boundaries, hence it is calculated under imports

(c.) Rina gets a new refrigerator made in the United States. - <em><u>This will fall under the category of consumption(C)</u></em>

Reason: Commodities produced within the domestic boundaries and further consumed or bought within domestic boundaries will be calculated under consumption

(d.) Rina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - <em><u>This will fall under the category of exports(X)</u></em>

Reason:  Here the maple syrup is being delivered to a third party living abroad so it will be calculated under export .

(e.) Musashi's employer upgrades all of its computer systems using U.S.-made parts. - <em><u>This will fall under the category of investment(I)</u></em>

Reason:  Money spent to upgrade the system in order to increase productivity and this indeed will have an effect for a long duration. Therefore it'll be seen as an investment.

6 0
3 years ago
In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by
myrzilka [38]

Answer:

both the required reserve ratio and the market interest rate (A)

Explanation:

The Federal Reserves influences the money supply by manipulating required money banks deposit reserve ratio, market interest rate and open market operations. If the Federal reserves wants to increase the supply of money, it will reduce the required reserve ratio by banks. Thus commercial bank would have more money at their disposal to lend to clients.

Also, the Federal Reserves, which is the apex bank and regulator of ALL bank, play the role of ''lenders of last resort'', hence they lend money to commercial banks, when they are constrained financially, by this, banks are able to lend to customers with ease.

Furthermore, the Federal reserves also buys and sells securities, which it uses to either increase the supply of money or reduce the supply of money in the economy, and can use this model to also address economic problem such as inflation.

6 0
3 years ago
Which does the following illustrate Cameron wants a modest house with enough property to keep horses
vladimir2022 [97]

Answer

C. Lifestyle

Explanation

Lifestyle is the way in which an individual lives. It is a composite word whose meaning cuts across needs and wants of a person which are controlled by the social class of the person, culture, family or reference groups. In this case, Cameron wants a modest house that has adequate space to keep horses. Cameron should be a  rich person who wants to maintain his class in the society by staying in a modern residence that can accommodate horses because the value of such a life is high.



5 0
3 years ago
Read 2 more answers
Impact of globalization on HR
alexandr1967 [171]
Changed the pattern of employment because they’re organizing their business around their core competence to face congestive threats effectively

So basically effect’s who they hire because they’re looking for specific skills to build a strong defense against the competition
6 0
3 years ago
The Colson Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable eac
emmainna [20.7K]

Answer:

1. The bonds are issued at face value:

(a) Jan 1

Dr Cash                    300,000

Cr Bond payable    300,000

( to record cash receipt from bond issuance at par)

(b) Jul 1

Dr Interest expenses           15,000

Cr Cash                                15,000

( to record payment of interest expenses calculated as 300,000 x 10% /2)

(c) Dec 31

Dr Interest expenses           15,000

Cr Interest payable             15,000

( to record incurred of interest expenses calculated as 300,000 x 10% /2)

2. The bonds in question 1 were issued at 98.

(a) Jan 1

Dr Cash                                    294,000

Dr Discount on Bond                  6,000

Cr Bond Payable                    300,000

( to record cash receipt from bond issuance in which Cash receipt = 300,000 * 98%; Bond Payable is recorded at par $300,000; The difference is recorded as Dr Discount on Bond $6,000)

(b) Jul 1

Dr Interest expenses                 15,600

Cr Discount on bond                  6,00

Cr Cash                                     15,000

( to record interest expenses incurred which is consists of $15,000 cash payment and the amortization of Discount on bond account calculated as 6,000/10 interest payment period)

(c) Dec 31

Dr Interest expenses                 15,600

Cr Discount on bond                  6,00

Cr Interest Payable                    15,000

( to record interest expenses incurred which is consists of $15,000 interest payable plus the amortization of Discount on bond account calculated as 6,000/10 interest payment period).

3. Assume the bonds in question 3 were issued at 103:

(a) Jan 1

Dr Cash                                 309,000

Cr Premium on Bond               9,000

Cr Bond payable                  300,000

( to record cash receipt from bond issuance in which Cash receipt = 300,000 * 103%; Bond Payable is recorded at par $300,000; The difference is recorded as Cr Premium on Bond $9,000)

(b) Jul 1

Dr Interest expenses                    14,100

Dr Premium on bond                       900

Cr Cash                                         15,000

( to record interest expenses incurred which is consists of $15,000 cash payment minus the allocation of Premium on bond account calculated as 9,000/10 interest payment period)

(c) Dec 31

Dr Interest expenses                    14,100

Dr Premium on bond                       900

Cr Interest Payable                       15,000

( to record interest expenses incurred which is consists of $15,000 interest payable minus the allocation of Premium on bond account calculated as 9,000/10 interest payment period)

Explanation:

8 0
3 years ago
Other questions:
  • When your manager, Novak, talks about a , he means a set of interrelated parts that function as a whole to achieve a common purp
    6·1 answer
  • Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $
    10·1 answer
  • ____ means that each department involved with new products has excellent linkage with relevant sectors in the external
    7·1 answer
  • Neither Subpart C (Prisoners) nor Subpart D (Children) applies to juveniles in the correctional systems because wardens of juven
    8·1 answer
  • Select the correct text in the passage. Which sentence describes a cooperative organization? Cohen and his friends work in a coo
    14·1 answer
  • The board of directors of a tile manufacturing company meet to discuss the installment of a new high-end machinery. They all agr
    12·1 answer
  • Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c
    6·1 answer
  • Free cash flow (FCF) and net income (NI) differ in the following ways:
    14·1 answer
  • Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, exc
    14·1 answer
  • A popular football player at a college who is able to influence the buying decisions of fans would best be described as a(n) ___
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!