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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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Denver Company engages Public Company to produce a large machine, install the machine, and train their employees on the machine.
nata0808 [166]

Answer:

Results are below.

Explanation:

Giving the following information:

Machine= $800,000

Installation= $100,000

Training= $100,000

Total= 1,000,000

Denver and Public agree to a total contract price of $920,000.

First, we will determine the sales proportion:

Machine= 800,000/1,000,000= 0.8

Installation= 100,000/1,000,000= 0.1

Training= 100,000/1,000,000= 0.1

Now, we can allocate the price to each one:

Machine= 920,000*0.8= 736,000

Installation= 920,000*0.1= 92,000

Training= 920,000*0.1= 92,000

4 0
3 years ago
thomas owes $438 on his credit card and was unable to pay more than the minimum payment of $20. unfortunately he mailed the paym
Kazeer [188]

Answer:

$575.82.

Explanation:

Since Thomas owes $ 438 on his credit card, but only paid the minimum of $ 20, his debt is now $ 418 (438 - 20). A late fee of $ 39 will be added to this value, which will raise said sum to $ 457 (418 + 39). In turn, the interest rate for unpaid card balances is 26% per month. Therefore, next month his balance will be $ 575.82 (457 x 1.26).

7 0
2 years ago
Why might an older person invest in conservative investment portfolio? a.Because an older person has less time to make up for ba
Musya8 [376]
The correct answer is <span>a.Because an older person has less time to make up for bad investments

Young people have their entire life to fix their bad investments and can invest into new things that are up and coming and developing. Older people don't have time for that and have to approach investments differently.</span>
4 0
3 years ago
Another word for ______ incentives is "rewards." Generally, these become more effective when coupled with ____ incentives. For e
IgorC [24]

Answer:

Another word for <u>Financial</u> Incentives is "rewards." Generally, these become more effective when couples with <u>Non-Financial</u> incentives.

For example, a <u>high ranking</u> grade in a class means more when it is possible to<u> get cash reward for that</u> grade.

             

The topic from which this question is derived is related to the study of Labor Grades and Rank and the Impacts of Non-Financial Incentives on Test Performance

Cheers!

7 0
3 years ago
LO 8.3What are some possible reasons for a direct labor time variance?
kifflom [539]

Answer:

The correct answer is letter "B": less qualified workers.

Explanation:

Direct labor rate variance analyses the current cost of direct labor and the regular cost of direct labor over the same operations period. Direct labor rate variance can be caused due to minimum wage increase, hiring less qualified employees or inappropriate cost budget setting.

5 0
3 years ago
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