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maria [59]
3 years ago
14

The management of Lanzilotta Corporation is considering a project that would require an investment of $280,000 and would last fo

r 6 years. The annual net operating income from the project would be $114,000, which includes depreciation of $31,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
A. 1.9 years
B. 2.5 years
C. 1.6 years
D. 3.2 years
Business
1 answer:
tester [92]3 years ago
6 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Initial investment= $280,000

Cash flow= 114,000 - 31,000= 83,000

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

Year 1= 83,000 - 280,000= -197,000

Year 2= 83,000 - 197,000= -114,000

Year 3= 83,000 - 114,000= -31,000

Year 4= 83,000 - 31,000= 52,000

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

(31,000/83,000)*365= 136

3.37 years

It will take 3 years and 136 days to cover for the initial investment.

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Feliz [49]

Answer:

Answer is explained in the explanation section below.

Explanation:

1. What are the root causes of late deliveries, according to you?

To begin, we must assess the current distribution network. The route of delivery (roadway), truck driver skills, poor fleet performance/condition, high unloading time at retailer stores, high truck turnover around time, and a variety of other factors are all factors that contribute to late deliveries.

2. How can you change operations to make things better?

Such options for improving the situation include:

Increasing the network's versatility by incorporating a new fleet of trucks of various sizes.

If there are several fulfilment centers, centralizing inventory (aggregation benefits) or locating new ones closer to the retailer's location are both options.

Improved forecasting approaches so that plans can be planned ahead of time

Examining the most efficient or shortest route or path between the warehouse and the retail stores.

3. What role does the warehouse inventory situation play in the issue of late deliveries?

Taking appropriate pre-cautionary steps at the warehouse level is one of the suggested ways to resolve the concerns about late deliveries.

According to the criteria, use LIFO (Last In, First Out) or FIFO (First In, First Out) inventory mechanisms.

Managing inventory at the retailer's shop by requesting additional shelf space or other storage facilities.

Organizing the products in the warehouse by product variety or in a desired series that is convenient to pick up would reduce truck waiting times.

Reviewing inventory levels and replenishing needed inventory on a regular basis to avoid stock outs and ensure safety stock availability.

7 0
3 years ago
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31
dusya [7]

Answer:

Legacy

The total bond interest expense to be recognized over the bond's life is:

= $189,172.82

Explanation:

a) Data and Calculations:

Face value of 5.5% bonds issued = $660,000

Proceeds from the bonds issue =       648,412

Bonds discounts =                                $11,588

Interest payment = semiannually at 2.75% (5.5%/2)

Market interest rate = 6%

Effective semiannual interest rate = 3% (6%/2)

N (# of periods)  8

I/Y (Interest per year)  3

PV (Present Value)  648412

PMT (Periodic Payment)  18150

Results

FV = $982,784.82

Sum of all periodic payments = $145,200.00

Total Interest = $189,172.82

6 0
2 years ago
Explain at least two elements of the free enterprise system here in the U.S.
Andreas93 [3]

Answer:

1.  Private ownership of factors of production

2.  Freedom to engage in commercial activities

Explanation:

<u>1.  Private ownership of factors of production</u>

In the US, individuals and firms are allowed to own properties. A significant percentage of the factors of production are in the hands of the private sector. Firms and individual influences the production of goods and services because they allocate resources to meet market demand.

<u>2.  Freedom to engage in commercial activities</u>

Entrepreneurs have the freedom to choose the type of business they want to start. They can also select the location and the time they want to operate. There are no upper limits to firms that can participate in the market.  Consumers are free to choose their suppliers. The market presents a variety of goods and services to consumers to pick from.

4 0
3 years ago
What is the National Labor Relations Board responsible for?
Alexxandr [17]

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6 0
3 years ago
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Diano4ka-milaya [45]

Answer:

$28,533.5

Explanation:

Principal value (PV) = $275,000

Time = 20 years

Rate = 8.25%

Present Value = P ((1-(1+R)^-n) / r)

275,000 = P ((1- (1 + 0.0825)^-20) /.0825)

275,000 x .0825 = P (1-(1/1.0825)^20)

22687.5 = P ((1.0825^20 - 1) / (1.0825 ^20))

22687.50 = P (4.8816 - 1 / 4.8816)

22687.5 = P (3.886 / 4.8816)

22687.5 = p(0.7951)

P = 22687.5 / 0.7951

P = $28533.5

6 0
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