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Dimas [21]
3 years ago
8

Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flo

ws -$475 $150 $200 $300 a. 2.88 years b. 2.85 years c. 2.42 years d. 1.96 years e. 2.47 years
Business
1 answer:
Rashid [163]3 years ago
8 0

Answer:

c. 2.42 years

Explanation:

The computation of the payback period is shown below:

<u>Year        Cash flow         Cumulative cash flow</u>

0               -$475                     -$475

1                  $150                     -$325

2                 $200                    -$125

3                  $300                    $175

Now the payback period is

= 2 years + $125 ÷ $300

= 2.42 years

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A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______.
liraira [26]

A firm's attempts to shorten the length of time a process takes may lead to disappointing outcomes because of time compression diseconomies.

<h3>What are time compression diseconomies?</h3>
  • According to time compression diseconomies, which are defined as inefficiencies that arise when work is done more quickly, the cost of building a competency will rise exponentially as the amount of time permitted to do so decreases.
  • Not every subsidiary deals with time compression diseconomies to the same extent.
  • The date of a later subsidiary formation may affect how strong TCD is. Early-established subsidiaries may have greater TCD than later entries due to two factors.
  • First, for late movers, vicarious learning may lower TCD. Second, TCD is made worse by the higher environmental uncertainty that early mover subsidiaries frequently experience.
  • TCD explains why the well-studied relationship between the level of multi-nationality and business success is negatively moderated by the rate of overseas expansion.

To learn more about Diseconomies refer to:

brainly.com/question/14563017

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4 0
2 years ago
On January 2, 2019, Adelphi Company purchased a patent for $235,000 plus
Ymorist [56]

Answer:

The annual amortization expense for 2019 will be $35000.

Explanation:

The amortization expense for the patent calculated based on the useful life of patent. The purchase of value of $235000 plus $10000 gives the total value of $245000 while use the patent of 7 years.

The formula for amortization expense = (Cost of patent - Residual value ) / Useful life of patent)

amortization expense = ($245000-0)/7 = $35000

The legal life would not count due patent in business use for limited life compare to legal life of patent.

4 0
3 years ago
how would a significant increase in consumption and economic activity among a nations consumers affect the nation economy
jeka57 [31]

When consumption increases, factories produce more, consequently having to expand, when they expand they hire new employees, meaning that more people have money to buy more things and boost the market.

It is almost like the balance of an ecosystem, if everything works well, the tendency is to continue improving

7 0
3 years ago
Kleen Company acquired patent rights on January 10 of Year 1 for $400,000. The patent has a useful life equal to its legal life
inessss [21]

Answer:

a. Particulars                                  Amount  

Patent cost                                     $400,000  

Less: Amortization for 3 years      <u>$150,000 </u> ($400,000*3/8)

Book value at the end of year 3  $250,000

Addition during Year 4                  <u>$20,000  </u>

Total book value                            <u>$270,000</u>

Patent amortization expense for the Year 4 = Total book value / Remaining life

Patent amortization expense for the Year 4 = $270,000 / 5

Patent amortization expense for the Year 4 = $54,000

b.                       Adjusting Entry

Date  Account titles                   Debit       Credit

         Amortization expense    $54,000

                Patents                                       $54,000

6 0
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In measuring an impairment loss for a financial asset under U.S. GAAP and under IFRS, the carrying value of the financial asset
Vitek1552 [10]

In measuring an impairment loss for a financial asset under U.S. GAAP and under IFRS, the carrying value of the financial asset would be compared to:

under U.S. GAAP Fair value and under IFRS recoverable amount.

Explanation:

In US GAAP, the cost of financial asset depreciation is calculated as the difference between carried value and fair value; in compliance with IFRS, a loss of financial asset impairment is defined as the difference between carrying value and the percentage of the asset that can be recouped.

In compliance with US-based ASC 360-10-35-20. The recovery of a historically identified impairment loss (or "restoration") is forbidden because an item is deemed to have a new cost base after an impairment loss has been registered.

7 0
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