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Lena [83]
2 years ago
6

Exercise 12-1 Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an inves

tment with the following cash flows: Year Investment Cash Inflow 1 $ 15,000 $ 1,000 2 $ 8,000 $ 2,000 3 $ 2,500 4 $ 4,000 5 $ 5,000 6 $ 6,000 7 $ 5,000 8 $ 4,000 9 $ 3,000 10 $ 2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in
Business
1 answer:
inna [77]2 years ago
3 0

Question Completion:

Requirement #2 would the payback period be affected if the cash inflow in the last year were several times as large

Answer:

Unter Corporation

1. Payback period of the investment is:

= 7 years.

2. No. The payback period would not be affected if the cash inflow in the last year were several times as large.  The payback period was reached in the 7th year, which is three years before the last year. No cash inflows after the 7th year will have any impact on the payback period.

Explanation:

a) Data and Calculations:

Cash flows:

Year  Investment  Cash Inflow

1       $ 15,000           $ 1,000

2       $ 8,000          $ 2,000

3                              $ 2,500    

4                              $ 4,000

5                              $ 5,000

6                              $ 6,000

7                              $ 5,000   $25,500

8                              $ 4,000

9                              $ 3,000

10                            $ 2,000

Total  $23,000     $34,500

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In 2013, the Bureau of Labor Statistics (BLS) announced that of all adult Americans, 143,929,000 were employed, 11,460,000 were
xz_007 [3.2K]

Answer:

A

Explanation:

To calculate the adult population, we simply make use of the data available from the BLS.

We can simply make the calculations by adding the number of employed Adult Americans to the number of unemployed adult Americans.

We simply do not have any business with the number not in labor force because they are actually part of those that are employed but are not just in the labor force.

The adult population is thus:

143,929,000 + 11,460,000 =155,389,000

6 0
3 years ago
Initiatives intended to improve an organization's positive impact on society and the natural environment are called:
ikadub [295]

Green marketing initiatives are intended to improve an organization's positive impact on society and the natural environment.

 

To add, green marketing<span> <span>products that are presumed to be environmentally safe. It incorporates a broad range of activities, including product modification, changes to the production process, [sustainable packaging], as well as modifying advertising.</span></span>

6 0
3 years ago
Exercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a luxury hotel with 160 suites. Its regular suit
zysi [14]

Answer:

If the special offer earns a positive contribution margin, we should accept the special order.

Explanation:

Given that,

No. of suites in luxury hotel = 160

Regular suite rate = $210 per night per suite

Hotel’s cost per night = $135 per suite

Variable direct labor and materials cost = $36

Fixed cost = 99

Total cost per night per suite = $135

Contribution margin per night per suite:

= Room rate per night - Variable cost per night

= $94 - $36

= $58

Contribution margin from special offer:

= Contribution margin per night per suite × Number of nights × Number of suits

= $58 × 3 × 45

= $7,830

Management should accept the special offer.

When the company receives offer, the hotel is running at low season. occupancy rate is 55%

If the special offer earns a positive contribution margin, we should accept the special order.

Room rate is $94 for special order.

8 0
3 years ago
Bundles of cedar shakes produced and sold 360,000 Sales revenue $ 2,412,000 Variable manufacturing expense $ 1,170,000 Fixed man
konstantin123 [22]

Answer:

0.343

Explanation:

Calculation for what The company's contribution margin ratio is closest to

First step is to calculate the Contribution margin using this formula

Contribution margin = Sales – Variable expenses

Let plug in the formula

Contribution margin= $2,412,000 – ($1,170,000 + $414,000)

Contribution margin= $2,412,000 – $1,584,000

Contribution margin= $828,000

Now let calculate the Contribution margin ratio using this formula

Contribution margin ratio = Contribution margin ÷ Sales

Let plug in the formula

Contribution margin ratio = $828,000 ÷ $2,412,000

Contribution margin ratio =0.343

Therefore The company's contribution margin ratio is closest to 0.343

4 0
2 years ago
Which of the following statements is true regarding variable costing?Multiple Choice
pentagon [3]

Answer:

a

Explanation:

8 0
2 years ago
Read 2 more answers
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