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raketka [301]
3 years ago
11

An investment project requires an initial investment of $100,000. The project is expected to generate net cash inflows of $28,00

0 per year for the next five years. These cash inflows occur evenly throughout the year. Assuming a 12% discount rate, the project's payback period is (Ignore income taxes.):
Business
1 answer:
Mamont248 [21]3 years ago
6 0

Answer:

the payback period of the project is 3.57 years

Explanation:

The computation of the payback period is shown below;

Payback period:

= Initial investment ÷Cash inflows

= $100,000 ÷ $28,000

= 3.57 years

We simply divided the initial investment by the cash inflows so that the project payback period could come

Hence, the payback period of the project is 3.57 years

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Nikolay [14]

Answer:

(B) Just-in-time inventory system

Explanation:

*Just-in-time inventory system" is a system used to cut costs such as holding or storage costs and it improves efficiency and reduces wastage as some products may be damaged during storage.

This system involves quick delivery of the required quantity of goods to stores right when they are needed and just before they go out of stock. It helps to eliminate the cost of storage that would result if goods are purchased in large quantities.

3 0
3 years ago
There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second house
11Alexandr11 [23.1K]

Answer:

regressive

Explanation:

A regressive tax is basically a tax whose rate increases as your income decreases. Generally you do not need to increase the marginal tax rate of lower income levels, all you need to do is have a flat tax that taxes everyone with the same amount. E.g. everyone pays $2,000 as income taxes. $2,000 per person represents 10% of the first household's income, but it only represents 2.7% of the fourth household's income.

On the other hand, progressive taxes increase as the income level of the taxpayers increases.

8 0
3 years ago
Which business document is a contract that defines the tasks, time frame, and deliverables that a vendor must perform for a clie
Aleonysh [2.5K]
The statement of work is <span>a contract that defines the tasks, time frame, and deliverables that a vendor must perform for a client.
There are several things that will be written in the statement of work in order to manage the deal, such as the name of the project, the timeline for the project, the project handler, the delivery method, etc.</span>
6 0
3 years ago
A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. Cash flows
skad [1K]

Answer:  13.26%

Explanation:

Year 0 Investment = $385,000

Incremental Cash flow every year = Cashflow if owned - Cashflow if leased

= 164,000 - 133,000

= $31,500

Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property

= 31,500 + 750,000

= $781,500

Using Excel and the IRR function, the rate is = 13.26%

5 0
3 years ago
It costs ​$34,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel​ (85% ethanol a
victus00 [196]

Answer:

The investor will pay up the rereofitted pumps in a period of 22.52 months.

Explanation:

<em><u>First,</u></em> we solve for the amount of profit generate per month:

21,000 gallons a month x $0.09 per gallon = $1,890

Now, we calcualte the time at which an monthly income of 1890 discounted at 2% per month matches a present value of 34,000

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $1,890.00

time    n

rate 0.02

PV $34,000.0000

1890 \times \frac{1-(1+0.02)^{-n} }{0.02} = 34000\\

(1+0.02)^{-n}= 1-\frac{34000\times0.02}{1890}

(1+0.02)^{-n}=  0.64021164

We use logarithmics properties to solve for n:

-n= \frac{log0.64021164021164}{log(1+0.02)

-22.52006579

n = 22.5200 = 22 and a half month.

7 0
3 years ago
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