1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost is $8;
zalisa [80]

Answer:

Average fixed cost for 20 units = $7

Explanation:

<em>The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.</em>

The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.

Average fixed cost = Total fixed cost / Total units produced.

Hence , Total fixed cost = Average fixed cost × units produced

DATA

AFC - $14

Units - 10 units

Total fixed cost = 10 × 14 = $140

Average fixed cost for 20 units =Total fixed cost / Number of units

140/20 = $7

Average fixed cost for 20 units = $7

3 0
3 years ago
Three Guys Burgers, Inc., has offered $18 million for all of the common stock in Two Guys Fries, Corp. The current market capita
Pavlova-9 [17]

Answer:

Annual synergy gain = $ 178,500

Explanation:

Value of synergy gain from acquisition = 18 - 15.9 = 2.1 million

Annual synergy gain = 2.1 *.085 = .1785 million or $ 178,500

Annual synergy gain = $ 178,500

3 0
3 years ago
A pharmaceutical research firm prohibits the employees who leave the firm from soliciting business from former customers or clie
gavmur [86]

Answer:

Non-piracy.

Explanation:

If a pharmaceutical research firm prohibits the employees who leave the firm from soliciting business from former customers or clients for a period of two years. This best exemplifies the non-piracy clause.

A non-piracy clause is a legal framework which provides protection for companies from an ex employee who has left. This clause states that ex employees are prohibited from soliciting business from former customers or clients either directly or indirectly for a period of two years.

<em>For instance, if Joyce works for XYZ pharmaceutical company that uses a non-piracy clause and later dropped a resignation letter or was laid off for a disciplinary action, she's prohibited from taking contracts from XYZ' customers for a period of two (2) years. </em>

8 0
3 years ago
Paris Company had common stock of $350,000 and retained earnings of $490,000. London Inc. had common stock of $700,000 and retai
Ganezh [65]

Answer: D. $2870000

Explanation:

Consolidated Assets are the assets that a company owes whether directly or indirectly through a subsidiary which will then be shown on the consolidated balance sheet of the company.

From the information given, the amount of total consolidated net assets will be calculated as:

= ($34000 × 35) + $700,000 + $980,000

= $1,190,000 + $700,000 + $980,000

= $2,870,000

8 0
3 years ago
1. The costs of doing business through the sale of goods and services are called a. Net income b. Expenses c. Revenues d. Divide
11Alexandr11 [23.1K]

Answer:

Dividends .............

4 0
3 years ago
Other questions:
  • One of your classmates was recently found to have cheated on the exam. Though furious, your instructor spoke to the student very
    5·1 answer
  • "A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate reco
    9·1 answer
  • A majority of employees surveyed believe that a top manager who violated ethics policies at their company would be
    10·1 answer
  • "john is a drug dealer who wants to make quick money. john is an example of a"
    12·2 answers
  • Sometimes employers discover evidence of employee ___ after someone has sued them for discrimination. Employers may try to use t
    15·1 answer
  • Sticky Company’s merchandise inventory balance at year end is $15,050, but a physical count reveals that only $15,000 of invento
    9·1 answer
  • Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income o
    15·1 answer
  • An elderly physician has built up his own practice into a quite valuable business. Now that he is thinking of retiring, he wants
    6·1 answer
  • And construction Falls to a lower level a major cause of fatalities true or false
    15·1 answer
  • The New Fund had average daily assets of $2.2 billion in the past year. New Fund's expense ratio was 1.1% and the management fee
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!