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
amid [387]
2 years ago
14

An investment project has annual cash inflows of $4,300, $4,000, $5,200, and $4,400, for the next four years, respectively. The

discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $7,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $10,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
xeze [42]2 years ago
7 0

Answer:

1.64 years

2.27 years

3.13 years

Explanation:

Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows

Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31

Amount recovered in year 1  = -5800 + 3805.31 = -1994.69

Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59

Amount recovered in year 2 =-1994.69 + 3132.59 = 1137.90

Payback period = 1 + 1994.69/3132.59 = 1.64 years

B

Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31

Amount recovered in year 1  = -7900 + 3805.31 = -4094.69

Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59

Amount recovered in year 2  = -4094.69 + 3132.59 = -962.10

Present value of cash flow in year 3 = 5200 / (1.13^3) = 3603.86

Amount recovered in year 3  = -962.10 + 3603.86 = 2641.76

Payback period = 2 years + -962.10 / 3603.86 = 2.27 years

C

Present value of cash flow in year 1 = 4300 / 1.13 = 3805.31

Amount recovered in year 1  = -10900 + 3805.31 = -7094.69

Present value of cash flow in year 2 = 4000 / (1.13^2) = 3132.59

Amount recovered in year 2  = -7094.69 + 3132.59 = -3962.10

Present value of cash flow in year 3 = 5200 / (1.13^3) = 3603.86

Amount recovered in year 3  = -3962.10 + 3603.86 = -358.24

Present value in year 4 =  4400 / (1.13^4) = 2698.60

Amount recovered in year 4  = -358.24 + 2698.60 = 2340.36

Payback period = 3 years + 358.24 + 2698.60 = 3.13 years

You might be interested in
Journalizing purchase and sales transactions
Firdavs [7]

Based on the given purchase and sale transactions, the journal entries are:

Date             Account Title                                   Debit                    Credit

Feb 3      Merchandise inventory                   3,300

                            Account payable                                       3,300

Feb 7            Account payable                               900

                    Merchandise inventory                                               900

Feb 9            Merchandise inventory                    400

                      Cash                                                                               400

Feb 10           Account receivable                        4,700

                      Sales revenue                                                             4,700

Feb 10            Cost of goods                                  2,350

                       Freight out                                          370

                      Merchandise inventory                                            2,350

                      Cash                                                                             370

Feb 12             Account payable                             2,400

                       Cash                                                                          2,328

                       Merchandise inventory                                                 72

Feb 28             Cash                                                 4,606

                         Sales discount                                      94

                         Account receivable                                               4,700

<h3 /><h3>What are the journal entries?</h3>

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

Find out more on discount terms at brainly.com/question/24086159.

#SPJ1

4 0
2 years ago
Sinh viên hãy chứng minh rằng “Việc triển khai thực hiện mục tiêu chiến lược dài hạn về doanh thu của ABC đến năm 2025” có liên
ra1l [238]

Answer:

jh

Explanation:

3 0
3 years ago
Consumers are willing to pay more for a product if
love history [14]
I think it should be A
5 0
3 years ago
Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
Fofino [41]

Answer:

$6,765

Explanation:

The total cost for job K913 is given by the sum of the costs with manufacturing overhead (fixed and variable), direct materials (M) and direct labor (L).

Since the company uses a predetermined overhead rate based on direct labor-hours, the overhead cost for job K913 is:

O = F+V\\O=\frac{150*\$511,000}{70,000} +150*\$2.10\\O=\$1,410

The total cost for the job is:

C=O+M+L\\C=\$1,410+\$705+\$4,650\\C=\$6,765

The total job cost for Job K913 is closest to $6,765.

8 0
3 years ago
Jack Thomas, who live in Minnesota, and Sandy Silver, who live in Oklahoma, each purchased $92,000 worth of securities at the lo
Alenkasestr [34]

Answer:

Follows are the responses to the given points:

Explanation:

In point a:

Yeah, throughout the state court they will ever sue against fraud. As base with the that State is appropriate so because the main place of work is specific budget inventory representatives Inc.

In point b:

Thomas couldn't sue for cheating at the federal court successfully, because equality in nationality would be the only conceivable way. Because as a federal problem also isn't involved, Thomas and both are comprehensive residents of Michigan weren’t diverse for this situation. The business is a resident of all its corporate headquarters and the State of formation.

In point c:

Throughout this situation, silver can claim nationality plurality, as Oklahoma's comprehensive would not be a citizen. It simple company does company in such a state doesn't render that business a citizen. However, if silver has been damaged in terms of $75,000, this failure combined with citizenship diversity would allow it to sue extensively in a federal court. This event does not tell everyone how slowly he lost, however, the facts weren't enough to make a correct judgment.

3 0
3 years ago
Other questions:
  • Becoming the candy lady tips for advertising and employing
    14·1 answer
  • Which type of financing source performs the most strict, rigorous review of business records before guaranteeing financing?
    10·1 answer
  • The A. J. Croft Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coup
    5·1 answer
  • A truck that cost $36,000 and on which $30,000 of accumulated depreciation has been recorded was disposed of for $5,000 cash. th
    9·1 answer
  • The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb
    13·1 answer
  • A ______ is a document prepared by the organization to identify and attract the right vendors to supply software, hardware, and
    14·1 answer
  • If real GDP per capita measured in 2009 dollars was​ $6,000 in 1950 and​ $48,000 in​ 2018, we would say that in​ 2018, the avera
    12·1 answer
  • Your sole proprietorship makes $90,000 per year in profits. Your average federal tax rate is 24% and your state tax rate is 6%.
    14·2 answers
  • Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses durin
    6·1 answer
  • How might buyers' perceptions of price influence pricing decisions?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!