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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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The entity that collects economic data at a regional level is the:___________
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Answer:

<u>the World Bank</u>

<u>Explanation:</u>

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3 years ago
Padraig receives total employment compensation of $70,000 and had $2,000 in job expenses. Which of the following could be true a
dimulka [17.4K]

<u>Answer:</u> Option C

<u>Explanation:</u>

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Calculation of total compensation

Employee benefits = $64000 x 12.5/100

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4 0
3 years ago
Read 2 more answers
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $31,098,000, net operating inco
miskamm [114]

Answer:

I. 14.50%

II. 3.55

III. 51.48%

Explanation:

Kindly observe your question is incomplete but i found the other section of the question

Kindly check attached picture for detailed explanation

6 0
3 years ago
Mullineaux Corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt
nlexa [21]

Answer:

10.02%

Explanation:

The computation of the WACC is shown below. The formula of WACC is shown below:

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3 years ago
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