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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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gtnhenbr [62]

Answer:

c. American put.

Explanation:

American options are defined as the type of contract that allows owner to exercise his option rights on any date of his choosing. This can even be on the date of expiration of the option.

European option on the other hand only allows option rights on the day of expiration of the option contract.

American put option allows the owner sell his option at any period within the contract life.

In the given scenario Jeff decided to sell his August options on on the 10th of August (before the expiry date). In exchange he recieved cash of $2,500.

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Which structure is used to supply customers (often other MNEs) in a coordinated and consistent way across various countries
Juli2301 [7.4K]

Answer:

Global account structure.

Explanation:

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3 years ago
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gtnhenbr [62]

Answer:

Her sociological imagination.

Explanation:

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Her sociological imagination to explain her inability to get a job. The sociological imagination can be regarded as a practice that involved having ability to “think ourselves away” from some of our daily and familiar routines of our lives, so that see them with critical and new eyes, Sociological imagination is ability gotten by individual to focus away from his/her particular situation then think from other point of view or alternative perspective. Sociological imagination can be regarded from other point of view as capacity of individual to shift his/her thought from one perspective to another perspective.

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Maintenance phase -

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The company or the organisation tries to invest the maximum amount in the maintenance phase .

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