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tatiyna
3 years ago
5

Houston Fashions is considering a new product line that would require an investment of $ 140,000 in fixtures and displays and $

180,000 in working capital. Store managers expect the following pattern of net cash inflows from the new product line over the life of the investment.
Year Amount
1 ......... $70,000
2 ......... 78,000
3 ......... 72,000
4 ......... 56,000
5 ......... 50,000
6 ......... 48,000
7 ......... 44,000
a. Compute the payback period for the proposed new product line. Houston Fashions requires a four- year pre-tax payback period on its investments. (Round to one decimal point.) Should the company make this investment? Explain.
b. Should Houston Fashions use any other capital project evaluation method(s) before making an investment decision? Explain.
Business
1 answer:
steposvetlana [31]3 years ago
6 0

Answer:

4.88 years

other methods should be used because payback method does not account for the time value of money

Explanation:

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Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the coming year using the high-low method
Anna11 [10]

Answer:

Variable Cost per hour is $4.86

Explanation:

given data

Highest Cost = $27,049

Lowest Cost = $19,772

Highest Cost Driver = 4,168  hours

Lowest Cost Driver =  2,672  hours

solution

we get here Variable Cost per hour that is express as

Variable Cost per hour = (Highest Cost - Lowest Cost) ÷ (Highest Cost Driver - Lowest Cost Driver)   ......................1

put here value and we get

Variable Cost per hour = \frac{27049-19772}{4168-2672}    

Variable Cost per hour = \frac{7277}{1496}    

Variable Cost per hour = 4.86

so Variable Cost per hour is $4.86

5 0
2 years ago
Change from the fair value method to the equity method Assume an investor company acquires for $256,000 an 8% investment in the
matrenka [14]

Answer:

Date         Account title and explanation      Debit        Credit

March 1    Equity investment                          $32,000

                ($612,000/17%)*8% - $256,000)

                       Unrealized holding gain                             $32,000

               (To adjust the value of equity investment)

Note: On 1 march, value of the investment value is increased which is unrealized based on 31 December fair value

6 0
3 years ago
To respond to the structure of its industry, an organization should choose a __________.
Usimov [2.4K]
To respond to the structure of its industry, an organization should choose a __________.

Competitive strategy
8 0
3 years ago
Amber’s academic adviser has asked her to set 3 academic goals for this semester. these goals are most likely to be accomplished
Kisachek [45]
Had to look for the options and here is my answer:

Since Amber was assigned by her academic adviser some academic goals, how these goals could be accomplished is by writing or noting down her goals. This way, she will have a guide on what to do first and the task will do done smoothly.
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3 years ago
What is the sum?<br>8+(-12)<br>0 -20<br>-4.<br>20​
Liula [17]

Answer:

is it negative 8? let me know if u get it rt

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3 years ago
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