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Sveta_85 [38]
3 years ago
9

The management of L Corporation is considering a project that would require an investment of $225,000 and would last for 6 years

. The annual net operating income from the project would be $115,000, which includes depreciation of $32,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):_____.
a. 1.5 years.
b. 1.6 years.
c. 1.4 years.
d. 2.0 years.
Business
1 answer:
Stolb23 [73]3 years ago
5 0

Answer:

a. 1.5 years

Explanation:

Annual net cash flow = Annual net operating income + Depreciation

Annual net cash flow = $115,000 + $32,000

Annual net cash flow = $147,000

Initial investment = $225,000

Payback period = Initial investment / Annual net cash flow

Payback period = $225,000 / $147,000

Payback period = 1.530612245

Payback period = 1.5 years

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Iggie took a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she had been promoted to
tiny-mole [99]

Answer:

$36,000

Explanation:

The computation of the lggie's salary is shown below:

= (Iggie salary in 1974) × (2003 price index ÷ 1974 price index)

= ($10,000) × (180 ÷ 50)

= $10,000 × 3.6

= $36,000

Since we have to compute the 2003 salary based on 1974 salary so we consider the 1974 salary and took the 2003 price index as a numerator and 1974 price index as a denominator.

8 0
3 years ago
Ms. Garden, the company bookkeeper, recorded the annual repair costs on the company's machinery as an increase to the machinery
iren [92.7K]

Answer:

a) Assets will be overstated

Explanation:

Annual repairs costs are operating expenses that should be debited to the repair and maintenance account. The amount should increase the repair and maintenance account and, consequently, expenses for that period.

If the repair expenses are debited to the asset account, assets increase in value. Since the repair costs are wrongfully posted,  the assets will be overstated. On the other hand, expenses will be understated

8 0
3 years ago
An office has 5 copy machines that need to be serviced approximately once an hour either for paper, staples, or toner or repair.
Anton [14]

Answer:

a. Average number of copiers in line is 0.275

b. Average number of copiers still in operation is 4.23

c. Average number being serviced is 0.496

d. No, the office should not do it

Explanation:

N = number of copy machines = 5

U = average time between unit service requirements = 1 hour = 60 minutes

T = average service time = 7 minutes

M = number of servers = 1

Cost of copier downtime = $20

Cost of attendant = $15

(a)  Service factor, X = T / (T+U) = 7 / (60+7) = 0.105

From the Finite Queuing Tables for a Population of N = 5,

For X = 0.105 and M=1, the efficiency factor, F = 0.945

So,  The average number waiting in line, L = N × (1 - F) = 5 × (1 - 0.945) = 0.275

(b) Average number in operation, J = N×F×(1 - X) = 5×0.945×(1 - 0.105) = 4.23

(c) Average number being serviced, H = F×N×X = 0.945×5×0.105 = 0.496

(d)  For M=1

The average number of copier down = N - J = 5 - 4.23 = 0.77

So, cost of downtime per hour = $20×0.77 = $15.4

Also, the cost of the server per hour = $15×M = $15×1 = $15

So, total cost = 15.4 + 15 = $30.4 per hour (i)

For M=2

From the Finite Queuing Tables for a Population of N = 5, with X = 0.105 and M=2, the efficiency factor, F = 0.997

J = N×F×(1 - X) = 5×0.997×(1 - 0.105) = 4.46

The average number of copier down = N - J = 5 - 4.46 = 0.54

So, cost of downtime per hour = $20×0.54 = $10.8

Also, the cost of the server per hour = $15×M = $15×2 = $30

So, total cost = 10.8 + 30 = $40.8 per hour (ii)

Comparing (i) and (ii), we can say that having another attendant is not cost-effective.

8 0
3 years ago
A primary feature of the "the mix" is anything for which one can lose: earned time good time family time probation time parole t
Luda [366]

Answer:

The correct answer is GOOD TIME

Explanation:

A primary feature of the "the mix" is anything for which one can lose GOOD TIME

8 0
3 years ago
A corporation has cumulative preferred stock on which it pays dividends of $20,000 per year. the dividends are in arrears for tw
tekilochka [14]
Its free real estate----------------------------
8 0
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