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marta [7]
2 years ago
13

Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated

useful life of 4 years with no salvage value at the end of the 4 years. Ataxia internal rate of return on this equipment is 6%. Ataxia discount rate is also 6%. The payback period on this equipment is closest to (Ignore income taxes.):
Business
1 answer:
Marrrta [24]2 years ago
8 0

Answer: 3.47 years

Explanation:

Payback Period on an investment can be calculated as:

= Cost of investment / Net annual cash inflow

The internal rate of return is the rate that equates the Cost of investment to the annual net cash inflow. This means that if you were to solve for the IRR factor, the formula would be:

= Cost of investment /Net annual cash inflow

Notice how the formulas are the same.

The factor for IRR is therefore the Payback period.

Using your Present value of an Annuity Factor table therefore, find the Factor for the IRR rate of 6% and 4 years.

= 3.4651

= 3.47 years

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14.7%

Explanation:

Frictional unemployment occurs when a person willingly quits his/her job in order to seek a better job.

Structural unemployment occurs when a person's skills do not fit the skills required by the firms that are hiring.

Cyclical unemployment results from a decrease in economic activity.

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3 years ago
How did the Great Depression affect economists’ beliefs about the macroeconomy?
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2 years ago
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2 years ago
Which of the following is an advantage of pursuing the​ employment-stability policy of follow demand exactly​? A. Minimizes labo
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C. Minimizes​ hiring, layoff, and unemployment costs

Explanation:

The employment-stability policy is a policy that aims to provide security and stability to employees of a company or industry. For workers, this is good because it creates greater security for planning the future of their lives. For businesses, it all depends. If workers keep output at a good level, firms will gain by reducing their spending on hiring research and layoffs.

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5 0
3 years ago
A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used
bagirrra123 [75]

Answer:  

<h2>$13,070 </h2>

Explanation:  

The Cost of inventory = all cost of purchase; including costs of conversion and transfer.

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Shipping insurance    $170

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3 years ago
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