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saw5 [17]
3 years ago
9

A project has an initial cost of $6,900. The cash inflows are $850, $2,400, $3,100, and $4,100 over the next four years, respect

ively. What is the payback period
Business
1 answer:
monitta3 years ago
4 0

Answer:

Thus, payback period is = 3 years and 1.61 months

Explanation:

Payback period is the time it will take the project cash flows to recover the initial investment. The payback period for the project in question will be,

<u>Year</u>       <u>Cash flow</u>      <u>Remaining Amount</u>

1               850               (6900 - 850) = 6050

2              2400             (6050 - 2400) = 3650

3              3100              (3650 - 3100) = 550

As the year 4 cash flow is 4100, we know that the amount will be recovered in year 4. However, we will calculate the exact period or months in year 4 that it will take to recover total initial investment assuming that cashflow occurs at constant rate through out the year.

Time = 550 / 4100 * 12 = 1.61 months

Thus, payback period is = 3 years and 1.61 months

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Skipper’s Pet Products was started by Steve to sell a range of dog food and treats made from fish. Due to fish being a very peri
Basile [38]

Answer: Yes it was

Explanation:

When considering where you should set up location, it is best to look at the cost of locating your business from various perspectives such as raw material acquisition, transport to suppliers, transport to customers and accessibility.

Depending on the business, some factors would have to be given more weight. In the above scenario, raw material acquisition and transport from suppliers should be given a higher weight because the goods are perishable and so costs would be high if the location is too far from the source of the fish.

Given that technology has made it easier to sell from many places, transport to customers is not as major a factor as transport to suppliers. The most important factor to focus on for this business therefore is raw material acquisition and by locating the company so close to the source, the cost to acquire the raw material from suppliers was heavily reduced so this was the best option.

3 0
3 years ago
During a period of severe inflation, a bond offered a nominal HPR of 83% per year. The inflation rate was 74% per year. a. What
Ierofanga [76]

Answer:

real HPR is 5.17 %

Explanation:

given data

nominal HPR = 83%

inflation rate = 74%

to find out

What was the real HPR on the bond over the year

solution

we find real interest rate r that is express as

r = \frac{R-i}{1+i}        .........................1

here R is nominal rate and i is inflation rate

so put here value

r = \frac{0.83-0.74}{1+0.74}

r = \frac{0.09}{1.74}

r = 0.05172

so real HPR is 5.17 %

3 0
3 years ago
Kate contracts Ofc Depot Inc. to install air conditioning units for each office in her company. Kate wanted the work to be done
PtichkaEL [24]

The answer is, Ofc Depot is entitled to a partial recovery under the contract.

<h3>What is the meaning of immediate recovery?</h3>
  • The most frequent type of recovery, immediate or short-term, happens shortly after an exercise session or other activity.
  • Low-intensity activity after working out and during the cool-down period is part of short-term healing.

<h3>What is short term recovery?</h3>
  • Response and short-term healing occur simultaneously and are overlapping.
  • It entails undertaking tasks including restoring interrupted utility and other necessary services, reopening transportation routes, and offering food and shelter to individuals who were displaced by the catastrophe.

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Learn more about partial recovery here:

brainly.com/question/15340461

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7 0
2 years ago
Delivery trucks enter and leave a depot through a controlled gate. At the depot, each truck is loaded with packages, which will
Andrews [41]

The question that cannot be answered based on the information in the delivery truck data base is 2) What is the average number of customer deliveries made by each truck on a particular day?

<h3>Why can this question not be answered?</h3>

In order to answer this question, the number of customers that each truck delivered to during the day needs to be recorded.

The total number of deliveries will then be added up and divided by the number of trucks making deliveries.

The information on the number of deliveries made is not in the database so this question cannot be answered.

In conclusion, option 2 is correct.

Find out more on databases at brainly.com/question/518894.

5 0
2 years ago
The city of Jacksonville, Florida is issuing $100,000,000 of general obligation bonds paying interest on January 1st and July 1s
Yuri [45]

Answer: Odd first interest payment

Explanation: The Interest paid on the first installment is a odd first Interest payment. Such scenario comes into play when a loan with a fixed installment payment date, which is 6 months in this case (January 1st and July 1st), begins on a date which does not allow the immediate use to f this regular payment schedule. Hence, the odd first Interst payment is adopted in other to enable the lender cove r the initial period before beung able to use the usual regular payment schedule. In this case the odd first Interest schedule is between June 1st to January 1st. After which regular payment schedule commences on July 1st.

5 0
3 years ago
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