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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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Telfer, Inc. reported net income of $2.7 million in 2020. Depreciation for the year was $162,300, accounts receivable decreased
vovikov84 [41]

Answer:

See below

Explanation:

Computation of net cash provided by operating activities using the indirect method

Cash flow from operating activities

Net income

$2,700,000

Adjustments to reconcile net income

Add: Decrease in accounts receivable

$357,400

Less: Decrease in accounts payable

$296,500

Add: Depreciation expense for the year

$162,300

Net cash provided by operating activities

$2,923,200

5 0
2 years ago
The focus of what a person or organization ought to do in when faced with a particular situation is referred to as: a. Substanti
galben [10]

Answer:

c. Normative ethics

Explanation:

Ethics involves the study of the moral principles and guidelines that determines how an individual behaves. Since people and organizations operate in a social environment, where they interact with other organizations and people, ethics has to be considered to improve how people and organizations act and behave.

1. Substantive ethics

Substantive ethics involves the formulation of guiding principles that can be used during cases of ethical dilemma.

2. Emotional ethics

It consists of the feeling and intuition that play a major role into how people behave in a given situation.

3. Normative ethics

It involves the study of ethics by looking at how an individual ought to act and the implications of that behavior. It involves asking questions about how one needs to behave in a given situation then considering the ethics of that action. It is a kind of predetermined cause of action that an individual is supposed to apply in order to arrive at specific ethical behavior.

4. Behavioral ethics

Behavioral ethics involves the study of ethical and unethical behavior and coming up with reasons as to why individuals choose to behave ethically or unethically.

6 0
3 years ago
When diversified firms use the revenues from profitable businesses to subsidize the operations of another business and then set
Over [174]

Answer:

<u>Predatory</u>.

Explanation:

This predatory pricing strategy is used when a company aims to create entry barriers for new competitors, significantly lower the price to gain new customers and drive competitors away. The cons of this strategy is that in addition to being illegal, lost revenue is not always recovered, and there are other factors that drive competitors away, not just price.

7 0
3 years ago
An engineering firm measures its output in standard service hours (SSH) per unit, which is a function of the skill levels of its
tatyana61 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The variable cost is $60 per SSH and the fixed cost is $2,000,000 per year. The firm charges $100 for each service per hour. Assume the maximum hours the firm operates (that is the output) is 170,000 per year.

1) To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,000,000/ (100 - 60)

Break-even point in units= 50,000 hours

2) %of hours= (50,000/170,000)*100= 29.41%

3) Fixed costs= $1,800,000

Break-even point in units= 1,800,000/40

Break-even point in units= 45,000 hours

The number of units required to cover for fixed costs diminished by 10%.

4) Selling price= $110

Break-even point in units= 2,000,000/(110 - 60)

Break-even point in units= 40,000 hours

The number of units required to cover for fixed costs diminished by 20%.

5) In generals terms, it is easier to increase the selling price compared to decreasing fixed costs. In this case, the best option is to increase the selling price. The effect on income and the break-even analysis is higher than decreasing fixed costs.

3 0
3 years ago
ALTS Infosystems is a software consulting firm based in Redmond. The firm uses a standardized job analysis questionnaire contain
katen-ka-za [31]

Answer:

the Position Analysis Questionnaire

Explanation:

Position Analysis Questionnaire -

It is a job analysis questionnaire which judges the skill level for job and the applicants characteristics for the job profile .

The PAQ method composed of detailed questions in order to generate the report analysis .

This have a wide range of application , in the industrial sector and individual and organizational psychology and even in the human resource department .

Hence , The ALTS infosystems is using Position Analysis Questionnaire .

5 0
3 years ago
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