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MakcuM [25]
3 years ago
12

Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,8

00,000 and either has
a. Even cash flows of $750,000 per year or
b. The following expected annual cash flows: $450,000, $225,000, $600,000, $600,000, and $150,000.

Required:
Calculate the payback period for each case
Business
1 answer:
sveticcg [70]3 years ago
5 0

Answer:

Payback period=2 years 5  months

Payback period=3 years  8 months

Explanation:

<em>The payback period is the estimated length of time in years it takes  .</em>

<em>It is the number of years it takes the cash project to break-even</em>

a) Payback period

Total cash flow for two years = 750×  2 = 1500.000

Balance of cash flow required to make up= 1800000- 1500,000  300,000

Payback period = 2 years + 300,000/750,000× 12 months=  2 years 5  months

Payback period=2 years 5  months

b) Payback period

Total cash flow for 3 years = 450,000 + $225,000 +600,000=1,275 ,000

Balance o cash required to make up 1800,000 = 1,800,000 -1275,000= 525,000

Pay back period = 3 years + 525,000/750,000×  12 months

                            = 3 years  8 months

Payback period=3 years  8 months

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Kay [80]

Answer:

D. All of the Above

hope this helps!

6 0
3 years ago
Sandra views herself as a tough but fair supervisor. She gives explicit instructions to her subordinates about how tasks should
Luden [163]

Answer:Telling style leadership

Explanation: According to Hersey and Blanchard’s situational model of leadership, The telling style is an authoritarian type of leadership ususally directed or used with low- maturity followers where the leader gives explicit directions and instructions on how tasks should be performed and orders are not subject to interpretation

This type of leadership usually occurs when the leader has an expertise in the area which he or she specializes and so gives clear, precise quick and controlled instructions for efficient  implementation.

Here, Sandra uses the Telling style leadership to accomplish tasks and performances.

4 0
3 years ago
Read 2 more answers
Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two comp
slava [35]

Answer:

Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )

Explanation:

Truman sell a large number of common household items ( assuming 100 unit )

while Stapleton sells a small number of expensive items ( assuming 20 units )

lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit

with the above assumptions

Truman gross profit ratio = $5 * 100 units = $500

Stapleton gross profit ratio = $50 * 20 units = $1000

from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units

4 0
3 years ago
What is the act of working in exchange for an income.?
Neporo4naja [7]

Employment is the act of working in exchange for an income.

 

Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee.

3 0
3 years ago
On March 1, 2015, Landon Company acquired real estate on which it planned to construct a small office building. The company paid
Murljashka [212]

Answer:

The amount to be reported as the cost of the land is  $101,000

Explanation:

Given information

Paid cash - $90,000

Cost of property $7,600

Salvaged materials - $1,700

Attorney's fee for work concerning the land purchase -  $1,100

Real estate broker's fee -  $4,000

Architect's fee - $7,800    

Put in driveways and a parking lot - $14,000

For computing the amount of the cost of the land, the Architect's fee and Put in driveways and a parking lot is not considered as it is not related to the land expenses. The computation is shown below

= Cash amount + Cost of property - Salvaged materials + Attorney's fee + Real estate broker's fee

= $90,000 + $7,600 - $1,700 + $1,100 + $4,000

= $101,000

Thus, the amount to be reported as the cost of the land is  $101,000

4 0
3 years ago
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