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valkas [14]
3 years ago
8

Bradshaw Inc. is contemplating a capital investment of $88,000. The cash flows over the project’s four years are: Year Expected

Annual Cash Inflows Expected Annual Cash Outflows 1 $30,000 $12,000 2 45,000 20,000 3 60,000 25,000 4 50,000 30,000 The cash payback period is
Business
1 answer:
Yuri [45]3 years ago
8 0

Answer:  3.50 years

Explanation:

The Payback period is a method of checking the viability of a project. It measures how long it will take a project to pay back it's initial investment.

Formula is;

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

Year 1 Net Cash Inflow

= Cash Inflow - Cash Outflow

= 30,000 - 12,000

= $18,000

Year 2

= 45,000 - 20,000

= $25,000

Year 3

= 60,000 - 25,000

= $35,000

Year 4

= 50,000 - 30,000

= $20,000

Year 1 + 2 + 3

= 18,000 + 25,000 + 35,000

= $78,000

Amount remaining till payback

= Investment - Cash inflow so far

= 88,000 - 78,000

= $10,000

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

= 3 + 10,000/20,000

= 3.50 years

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Answer: 2) increasing opportunity costs.

Explanation:

The Production Possibilities frontier is bowed out as it shows that for one more unit of a good to be produced, an additional unit of the other good must be given up.

This represents increasing opportunity costs because opportunity cost is the cost we incur for choosing one alternative over another. By producing more and more of one good, we give up more and more of the other good which means that our opportunity cost rises.

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3 years ago
Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of t
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Answer:

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Explanation:

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3 years ago
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As attached.

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2 years ago
Interest rates are affected by what? (for Global Business)
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You own a portfolio that has $2,600 invested in Stock A and $3,600 invested in Stock B. If the expected returns on these stocks
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Answer:

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Explanation:

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