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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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MakcuM [25]

Answer: Cost Based pricing

Explanation:

4 0
3 years ago
Juanita is trying to convince the owner of a jewelry store to hire her. She argues that she could help the shop sell an addition
viva [34]

Answer:

a. the wage rate must be < $60 per day.

Explanation:

Additional sale due to Juanita = $20 [tex]\times[/tex/ 3 = $60 each day.

In this case additional revenue = $60 per day, thus the cost shall be less than $60 per day, this is with the basic assumption that all the fixed cost is recovered originally before Juanita's appointment, as now each variable cost has to be recovered, we have additional profit of $60 per day, so therefore cost shall not exceed additional revenue, as this will lead to loss, therefore her wage rate shall be less than $60 per day.

Final Answer

a. the wage rate must be < $60 per day.

5 0
3 years ago
it is often said that managers often make decisions without all the necessary information. Why is this so?
Elena L [17]

Managers usually make decisions without all the necessary information because they are not aware of the alternatives that they've and aren't able to predict the consequences of the decision.

  • In management, decision-making is vital. Decision-making is important in the planning process. During planning, the manager decides on the goals that an organization wants to pursue.

  • In certain cases, a manager may not have all the required information regarding a particular issue but despite that still makes such decisions. Also, there are some decisions that require urgent attention, and delaying such decisions can further complicate such issues.

Read related link on:

brainly.com/question/9075718

8 0
3 years ago
A company reports the following information: Beginning inventory $ 11,000 Ending inventory 13,000 Expenses 7,000 Net purchases 2
PSYCHO15rus [73]
I think it is B).$34,000 because they are net sales meaning they are after taxes and they wouldnt be getting the clean $38,000 so i that is why i think it is B
4 0
3 years ago
Rosalind, a seventeen-year-old, signs a contract to sell her car to street fleet used cars. the next day, rosalind tells street
zzz [600]
For the answer to the question above, I believe that
<span>rosalind is liable to the street fleet for "<u><em>NOTHING</em></u>"

There is no payment made or any sort of transaction that ends the deal and perhaps and I think the contract is voided because of her age.
</span>
6 0
3 years ago
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