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3 years ago

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Business

1 answer:

Taya2010 [7]3 years ago

7 0

Answer:

6.50 Years

Explanation:

The computation of the payback period of the investment is shown below;

Total cash outflow is

= $15,000 + $8,000

= $23,000

Now the Cash Inflow in all 6 years is

= $1,000 + $2,000 + $2,500 + $4,000 + $5,000 + $6,000

= $20,500

Cash inflow in Year 7 is $5,000.

But Cumulative Cash flows from Year 1 to Year 7 is

= $20,500 + $5,000

= $26,500

This amount is more than Initial Investment i.e. $23,000.

So our Payback period is between 6 & 7 years i.e.

= 6 + ($23,000 - $20,500) ÷ 5000

= 6.50 Years

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How is a line of credit different from a loan?

attashe74 [19]

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4 years ago

The country of Micronesia is currently experiencing a recessionary gap. The size of the recessionary gap is $500 billion. If the

anastassius [24]

Answer:

The appropriate solution is "100 billion".

Explanation:

The given values are:

Recessionary gap (Total change),

= $500

Marginal propensity consume (MPC),

= 0.8

Now,

Multiplier will be:

= $\frac{1}{1-MPC}$

On putting the value of MPC, we get

= $\frac{1}{1-0.8}$

= $5$

As we know,

⇒ $Total \ change=Government \ spending's \ increase\times Multiplier$

⇒ $Government \ spending's \ increase=\frac{Total \ change}{Multiplier}$

On substituting the values, we get

⇒ $=\frac{500}{5}$

⇒ $=100 \ billion$

8 0

3 years ago

A manager is requested to help whenever there is a breakdown in a firm's production line. Which primary skills does this manager

exis [7]

Answer:

engineering

Explanation:

if there is a break down the manager should be able to fix it using engineering.

7 0

3 years ago

Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that b

Anuta_ua [19.1K]

Answer:

a. Labor productivity is 16.67 per hour

b. Multifactor productivity = 0.93

Explanation:

Number of guitars produced = 100

Guitars good enough to sell = 80%

Number of guitars good enough to sell = 80% * 100 = 80 guitars.

Selling per price = 250

Labour hours per guitar = 12 hours

Value of output = 250 * 80 = 20.000

input in labor hourse = guitars produced * labors per guitar = 100 * 12 = 1200 hours

Labor productivity = output/input = 20.000 / 1.200 = 16.67 per hour

Therefore, labor productivity is 16.67 per hour

labor cost = 11 per hour

material cost= 42 per guitar

overhead cost = 4.000

total labor cost = guitars produced* labor cost per hour*labor hours per guitar

= 100*11*12

=13.200

Total material cost = guitars produced * material cost per guitar = 100 * 42 = 4.200

Multifactor productivity = output / labour cost + material cost + overhead cost

Multifactor productivity = 20.000 / (13200 + 4200 + 4000)

Multifactor productivity = 20.000 / 21.400

Multifactor productivity = 0.93

4 0

3 years ago

Alpha Corporation has 1,500 shares of $40 par, 7% cumulative preferred stock, and 2,200 shares of $10 par common stock. Alpha pa

lidiya [134]

Annual preferred dividend = 0.07*40*1500 =$4,200

Since there was a one year dividend arrears to preferred stock holders, the total amount that goes to preferred stockholders = 4,200 + 4,200 (arrears of previous years) = 8,400

So common stockholders received = 10,000-8,400 = $1,600 in dividends

So dividend per share for common shareholders =1600/2200 = $0.727/share

3 0

4 years ago