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LuckyWell [14K]
3 years ago
9

Fuzzy Tail Industries produces wooden picnic tables for fuzzy creatures (hamster and squirrel size are its most popular products

). The company is deciding whether or not to purchase a new machine that would require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 in years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 and 7, and $4,000 for years 8 through 10. The company prefers a payback period of 4 years or less. What is the payback period for this machine
Business
1 answer:
scoray [572]3 years ago
5 0

Answer:

7.5 Years

Explanation:

The computation of the payback period of the given machine is shown below:

<u>Year       Initial outflow       Cash flow       Cumulative cash flow</u>

               (52000)  

1                                              10,000               10,000

2                                              10,000              20,000

3                                              10,000              30,000

4                                               8,000               38,000

5                                               8,000               46,000

6                                               2,000                48,000

7                                                2,000                50,000

8                                                4,000                 54000

9                                                4,000                 58000

10                                               4,000                 62000

Now the Payback period is

=  Completed years+ required cash ÷ annual cash inflow

= 7 years + 2000 ÷ 4000

= 7.5 Years

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On January 1, Greene Inc. issued $5,000,000, 9% bonds for $4,685,000. The market rate of interest for these bonds is 10%. Intere
skad [1K]

Answer:

b.$296,500.

Explanation:

Calculation to determine what Greene should report as unamortized bond discount

First step is to calculate the discount amount

Discount Amount= ($5,000,000 × .09) - ($4,685,000 × .10)

Discount Amount= $18,500

Now let determine the unamortized bond discount

Unamortized bond discount=$315,000 - $18,500 Unamortized bond discount= $296,500

Therefore Greene should report unamortized bond discount of $296,500

5 0
3 years ago
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Answer:

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Note that when a significant amount of a population come from a certain ethnic group, demand for ethnic products is more likely to increase. Thus, this has made Marco feel very much at home.

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3 years ago
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Comparing seller invoices to stock fees, obtaining decreased price or market facts, and recalculating deprecation schedules relate to the assertion: of valuation and allocation.

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1 year ago
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Aloiza [94]

Answer:

1.98%

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As we know that

PPP equation i.e

Nominal Interest rate = Real interest rate + Inflation rate

Now

The Inflation rate for Fiji is

= 5% - 2%

= 3%

And, the Inflation rate for US is

= 3% - 2%

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As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:

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8 0
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Sav [38]

Answer:

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It should be noted that input/outcome ratio is used in the calculation of exchange relationship you received.

Which is the value of the inputs you provide per the value of the outcomes been received

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