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vovangra [49]
3 years ago
8

An investment project has annual cash inflows of $4,200, $5,100, $6,300, and $5,500, and a discount rate of 15 percent. a. What

is the discounted payback period for these cash flows if the initial cost is $6,900
Business
1 answer:
Naddika [18.5K]3 years ago
6 0

Answer:

It will take 1 year and 307 days to cover the initial investment.

Explanation:

Giving the following information:

Initial investment= $6,900

Cash flows:

Cf1= $4,200

Cf2= $5,100

Cf3= $6,300

Cf4= $5,500

Discount rate= 15%

<u>The payback period is the time required to cover the initial investment. We need to discount each cash flow.</u>

<u></u>

Year 1= 4,200/1.15 - 6,900= -3,247.83

Year 2= 5,100/1.15^2 - 3,247.83= 608.50

<u>To be more accurate:</u>

(3,247.83 / 3,856.33)*365= 307 days

It will take 1 year and 307 days to cover the initial investment.

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Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
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Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

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Increase in retained earnings = Net income - Dividend = $(50000-10000)

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Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0
3 years ago
Pick the correct statements regarding cell references.
seropon [69]

where are the statements?

6 0
3 years ago
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"The Free-Float Company, a company in the 36% tax bracket, has riskless debt in its capital structure which makes up 40% of the
Strike441 [17]

Answer:

Equity Beta = 1.1413

Explanation:

The formula to find the asset beta is

Asset Beta = Equity Beta/(1+(1-tax rate)(Debt/Equity))

We will put the values given in the question in this formula

Asset Beta = 0.8

Tax rate = 0.36

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1.4266*0.8= Equity Beta

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6 0
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An extremely important use of reports of actual results versus budget projections is:
Irina18 [472]

The answer is<u> "Identifying potentially troublesome areas so that corrective action can be taken".</u>


A budget report is an inward report utilized by the board to think about the assessed, planned projections with the real performance number accomplished amid a period.  

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3 years ago
A resource constraint can be exploited using CCPM methodology by: Determining the priority among projects for access to the drum
irina [24]

Answer:

Determining the priority among projects for access to the drum.

Explanation:

An Israeli physicist named, Eliyahu M. Goldratt developed the Critical Chain Project Management (CCPM) and introduced it in his book "Critical Chain" in 1997.

The CCPM is a project management methodology used by managers to better manage a project. The CCPM ensures that the project plan is feasible and immune from any uncertainty or statistical fluctuations.

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