Answer:
The payback period for the $90000 investment is 5 years.
Explanation:
Payback period=Initial outlay/Annual net cash flow
This requires that the initial capital investment must be established,which is $90000
However, the investment gives expected incremental cash inflows of $50000 as well as outflows of $32000, as a result , annual net cash flow is $18000($50000-$32000)
In other words,payback period is $90000/$18000=5 years
The payback refers to number of years it takes the initial investment to be recouped.This means that any net cash inflows after 5 years are the project's return.
Answer:
equity, freedom, security, efficiency, growth
Explanation:
The economic goals include:
1. Equity: occurs in an economy when income and wealth are fairly distributed within a society.
2. Efficiency (efficiency freedom): is achieved when society is able to get the greatest amount of satisfaction from available resources in an economy
3. Economic growth: when there is an increase in the economy's ability to produce goods and services, often indicated by measuring the growth rate of production.
The other economic goals are:
Economic Stability, balance of payment, Price Stability or Controlling Inflation and Full Employment.
Answer:
March 1
Dr Notes Receivable $10,900
Cr Service Revenue $10,900
September 1
Dr Cash $11,390
Cr Notes Receivable $ 10,900
Cr Interest Revenue $490
Explanation:
March 1
Dr Notes Receivable $10,900
Cr Service Revenue $10,900
(Provide legal services and accept note)
September 1
Dr Cash $11,390
Cr Notes Receivable $ 10,900
Cr Interest Revenue $490
(Receive cash on note receivable and interest)
(Interest revenue = $10,900 x 9% x 6/12) =490.5
Answer:
Correct option is C
<u>Overall operating income will decrease by $25,000.</u>
Explanation:
Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3
Sum of sales ratio = 2+3 = 5
Common fixed cost:
Product 1 = 2/5×46,000 = $18,400
Product 2 = 3/5×46,000 = $27,600
Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000
Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)
Answer:
$5,360
(not given in the options)
Explanation:
Depreciation is the systematic allocation of cost to an asset based on estimates. It is given as
Depreciation = (cost - salvage value)/useful life
When originally purchased, a vehicle costing $23,040 had an estimated useful life of 8 years and an estimated salvage value of $1,600
Annual depreciation = ($23,040 - $1,600)/8
= $2,680
After 4 years
Accumulated depreciation = 4 × $2,680
= $10,720
The net book value then
= $23,040 - $10,720
= $12,320
Since the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value
New depreciation = ($12,320 - $1,600)/2
= $5,360
The depreciation expense in year 5 equals $5,360
