All categories

2 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]2 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

You might be interested in

Preparing journal entries-outputs Hartley Company has a production process that involves three processes. Units move through the

Blababa [14]

Answer:

(It is assume that completed unit have been transferred to next department)

The jounal entries for each transaction is given below.

Cost of units completed in the Cutting Department, $17,000

Debit WIP stamping Dept $ 17,000

Credit WIP cutting Dept $ 17,000

Cost of units completed in the Stamping Department, $30,000

Debit WIP polishing Dept $ 30,000

Credit WIP stamping Dept $ 30,000

Cost of units completed in the Polishing Department, $35,000

Debit Finished good $ 35,000

Credit WIP polishing Dept $ 35,000

Sales on account, $50,000

Debit GOGS $ 40,000

Credit Finished good $ 40,000

Debit Receivable Account $ 50,000

Credit Sales $ 50,000

6 0

3 years ago

Read 2 more answers

Read the following paragraph and respond to the questions below.

-Dominant- [34]

Answer:

a. The number sentence that is the topic sentence is sentence (1).

b. Sentence (6) does not contribute to the paragraph's unity. It can be eliminated, without changing the meaning that can be obtained from the paragraph. It does not support the topic.

c. The writer, in sentences 3 through 7, provides an example and further details to help the reader to understand her point.

d. The example in a sentence makes the idea clearer to the reader. Without the example, which provides further details, the reader may not clearly appreciate the topic under discussion.

Explanation:

The purpose of the topic sentence is to introduce the theme of the paragraph or the point of view of the writer. It captures the essence of the story. As it bears the central idea, it focuses the paragraph to achieve unity.

5 0

2 years ago

A capital budgeting project is expected to have the following cash flows: Year Cash Flows 0 -$850,000 1 $300,000 2 $400,000 3 $5

diamong [38]

The capital budgeting project's net present value at an 18% required rate of return is <u>($4,200).</u>

<h3>What is the net present value?</h3>

The net present value represents the net discounted value of cash inflows after subtracting the present value of cash outflows.

The net present value can be determined by determining the present values of cash inflows and outflows and netting the two values.

<h3>Data and Calculations:</h3>

Required rate of return = 18%

Project period = 3 years

Year Cash Flows PV Factor Present Value

0 -$850,000 1 -$850,000 ($850,000 x 1)

1 $300,000 0.847 $254,100 ($300,000 x 0.847)

2 $400,000 0.718 $287,200 ($400,000 x 0.718)

3 $500,000 0.609 $304,500 ($500,000 x 0.609)

Net present value ($4,200)

Thus, the capital budgeting project's net present value at an 18% required rate of return is <u>($4,200)</u>.

Learn more about the net present value at brainly.com/question/13228231

#SPJ1

8 0

1 year ago

Increased flexibility in scheduling has become an important benefit for employers to offer because of:

Katyanochek1 [597]

Increased flexibility in scheduling serves as important benefit for employers to offer because of:

1)the increase in single parent homes

2)the increase in two-income families

Scheduling serves as a process of arranging as well as controlling and optimizing work when carrying out a production process.

It is important for employers to have Increased flexibility in scheduling because of the rise in single parent home.

Learn more at:

brainly.com/question/9917659?referrer=searchResults

4 0

2 years ago

What is the most accepted time frame associated with the MOV SEP code?

shusha [124]

The inference is that the most accepted time frame associated with the MOV SEP code is 60 days or 2 months.

<h3>What is an inference?</h3>

An inference is the conclusion that can be deduced based on an information.

In this case, the inference is that the most accepted time frame associated with the MOV SEP code is 60 days or 2 months. This is the period when you can sign for health insurance.

Learn more about inference on:

brainly.com/question/25280941

#SPJ1

3 0

2 years ago