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
PSYCHO15rus [73]
3 years ago
6

The Zingstad Corporation is considering an investment with the following data (Ignore income taxes.): Year 1 Year 2 Year 3 Year

4 Year 5 Investment $ 32,000 $ 12,000 Cash inflow $ 8,000 $ 8,000 $ 20,000 $ 16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: Multiple Choice 4.0 years 3.5 years 3.0 years 4.5 years
Business
1 answer:
sergey [27]3 years ago
4 0

Answer:

3.5 years

Explanation:

The computation of the payback period is given below:

Given that

In year 0 = $32,000

In year 0 = $12,000

In year 1 = $8,000

In year 2 = $8,000

In year 3 = $20,000

In year 4 = $16,000

In year 5 = $16,000

Based on the above information  

Now If we add the first 3 year cash inflows then it is  $36,000

After this, we deduct the $36,000 from the $44,000  ($32,000 + $12,000) so the remaining amount would be $8,000 now if we added the fourth year cash inflow the total amount would be more than the initial investment.

Therefore, we deduct it

Now,  the next year cash inflow is $16,000

Thus, the payback period  is  

= 3 years + $8,000 ÷ $16,000

= 3.5 yeas

You might be interested in
At the end of the fiscal year, Kappa Pet Co. has an outstanding purchase commitment for the purchase of 1 million gallons of jet
Pani-rosa [81]

Answer:

-

Explanation:

6 0
4 years ago
The bank loan of $2,000,000 requires Irkalla to maintain certain financial ratios but Irkalla has not been able to do so and is
aalyn [17]

Answer:

Current liabilities at December 31, 2014 for Irkalla;

$200,000 + $100,000 + $2,000,000 + $1,000,000 = $3,300,000.  

Method of reasoning: Accounts payable-exchange and Short-term borrowings consistently fall under "Current Liabilities". Development for Other bank advance has not explicitly given (for example develops June 30, 20 × 5), so we accept it to develop on June 30, 2015. Since development is expected inside 1 year, it additionally falls under current risk as term is just a single year. On the bank credit of $2,000,000, Irkella has damaged the terms, so now this advance is likewise required to be paid off soon and thus it additionally now goes under "Current Liabilities"

8 0
4 years ago
Read 2 more answers
An investment has the potential of earning you $5000 at a 20 percent probability $3000 at a 50 percent probability, and $2000 at
kap26 [50]

Answer:

The expected value of the investment is $3,100

Explanation:

In order to calculate the expected value of the investment we would have to make the following calculation:

The expected value is the summation of the (event * probability of happening that event).

Therefore, The expected value of the investment = ($5,000*0.20) + ($3,000* 0.50) + ($,2000* 0.30)

The expected value of the investment = $1,000 + $1,500 + 600

The expected value of the investment= $3,100

The expected value of the investment is $3,100

7 0
3 years ago
Which of the following is the major drawback of job sharing from management's perspective? difficulty in coordinating schedules
Debora [2.8K]

Answer:

difficulty in finding compatible partners.

Explanation:

Job sharing or work sharing is a practice in an organisation where 2 people are engaged on a part time basis to perform a task that will normally be given to one person working full time. This results in lower per employee income because all positions are shared.

For example an employer can hire two workers to work for 3 days in a week, achieve the job of a full time staff working a full week, and still turn in the finished work early.

A drawback to this arrangement will be difficulty in finding compatible partners.

4 0
3 years ago
If the state minimum wage is higher than the federal minimum wage, which minimum wage is used?
Nataliya [291]

1.federal because imagition limits

6 0
2 years ago
Other questions:
  • Brief Exercise 5-58 Sales Discounts (Appendix 5A) Harry Gardner provides tax services for small businesses. This year's tax seas
    8·1 answer
  • Strategy implementation can be the most difficult part of the strategic management process. Which of the following is not likely
    14·1 answer
  • Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from sup
    12·1 answer
  • A stock split
    11·2 answers
  • A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable co
    7·1 answer
  • A company granted its employees 100,000 stock options on January 1, Year 1. The stock options had a grant date fair value of $15
    6·1 answer
  • If a landowner purchased a vacant lot six years ago for $25,000, assuming no income or holding costs during the interim period,
    8·1 answer
  • On 4 October 2020, Tumusiime Stationers purchased merchandise on account from Office Suppliers for Sh 62,000, with terms of 1/10
    8·1 answer
  • When government policy moves from a budget deficit to a budget surplus and the trade deficit remains constant:
    9·1 answer
  • Used in noncollusive oligopolistic markets, the practice of a dominant firm to signal upcoming price changes to other firms in t
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!