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Bad White [126]
3 years ago
8

Payback Period Jan Booth is considering investing in either a storage facility or a car wash facility. Both projects have a five

-year life and require an investment of $360,000. The cash flow patterns for each project are given below. Storage facility: Even cash flows of $120,000 per year Car wash: $112,500, $142,500, $60,000, $120,000, and $90,000 Required: 1. Calculate the payback period for the storage facility (even cash flows). years 2. Calculate the payback period for the car wash facility (uneven cash flows). Round your answer to three decimal places. years Which project should be accepted based on payback analysis

Business
1 answer:
AfilCa [17]3 years ago
3 0

Answer:

1. 3 years

2. 3.375 years

3. The storage facility project

Explanation:

The payback period measures how long it takes for the amount invested in a project to be recouped from cummulative cash flows.

When there are more than 1 project to be chosen from, the project whose payback period is the least should be chosen.

Therefore, the storage facility project should be chosen.

Explanations on how the payback period is calculated can be found in the attached images. Please contact me if you need clarification.

I hope my answer helps you.

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Which of the following sentences express correct number style?
Gre4nikov [31]

Answer: a. The professional software package included Web 2.0 applications, but it cost more than $1,200.

Explanation:

A simple rule for writing a correct number style is that when writing numbers between 1 - 9 ( single digits numbers), you should spell them out. When writing anything larger however or if writing multiple numbers, you should write them as numerals.

This convention can be typically broken every now and then in certain cases. One of those cases is that, if you have a situation where you have 2 numbers in a sentence, you have to use one style for it and if the 2 numbers consist of 1 small number and 1 large number you would preferably have to use numerals.

For this reason Option A which has two numbers written as numerals is correct.

It is worthy of note however, that different styles exist as do Citation Styles and this answer is based on the most rudimentary of said styles.

4 0
3 years ago
A(n) _____ organization is characterized by a relatively low degree of job specialization, loose departmentalization, few levels
lbvjy [14]

Answer:

organic

Explanation:

Based on the information provided within the question it can be said that the type of organization that is being described is called an organic organization. This is a type of organization that is extremely flexible, thus allowing it to easily adapt to changes in it's environment. Such aspects as the ones described in the question allow an organization to become flexible.

3 0
3 years ago
Read 2 more answers
You have an investment that will pay you 1.18 percent per month. a. How much will you have per dollar invested in one year? (Do
fiasKO [112]

Answer:

The correct answer for option (a) is $1.15 and for option (b) is $1.33.

Explanation:

According to the scenario, the given data are as follows:

Present value (PV) = $1

Rate of interest (R) = 1.18% per month

Time period (for option a) (t1)= 12 months

Time period ( for option b) (t2)= 24 months

So, we can calculate the future value by using following formula:

FV = PV × ( 1 + R )^t

(a). By putting value in the formula:

FV = $1 ( 1 + 0.0118)^12

= $1 × 1.1511610877

= $1.15

FV = PV × ( 1 + R )^t

(b). By putting value in the formula:

FV = $1 ( 1 + 0.0118)^24

= $1 × 1.32517184983

= $1.33

6 0
3 years ago
Six investors purchase a shopping center. One of them manages the tenants and another manages the marketing and leasing. Two oth
GREYUIT [131]

Answer:

a. a general partnership

Explanation:

Based on the scenario being described within the question it can be said that this example best matches a general partnership. This term refers to a business arrangement in which two or more individuals all agree to join forces and unify all assets, profits, losses, and liabilities. Which is what the six investors are doing by purchasing and equally owning a shopping center together.

7 0
3 years ago
Read 2 more answers
A loan is being amortized by means of level monthly payments at an annual effective interest rate of 8%. The amount of principal
suter [353]

Answer:

d) 216

Explanation:

We need to equate the value of 12th payment and t^th payment through the below formula.

=> 1000*(1+8%)^[(t-12)/12] =3700

=> (1.08)^[(t-12)/12] =3.7

=> [(t-12)/12] =17

=> t=216

4 0
3 years ago
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