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
ira [324]
3 years ago
10

Q 10.7: Melbee Farms is considering purchasing a new combine that would help them finish their harvesting faster, thus allowing

them to pick up extra revenue by doing custom combining for other farmers. The combine and headers cost $487,000. They expect to have net cash flows of $157,000 in year 1, $182,000 in year 2, $202,000 in year 3, and $213,000 in year 4. If they discount the cash flows by 7%, what is the discounted payback period for the combine
Business
1 answer:
LUCKY_DIMON [66]3 years ago
5 0

Answer:

Discounted payback period= 3 years 1 month

Explanation:

The discounted payback period is the estimated length of time in years it takes the present value of net cash inflow from a project to equate the net cash the initial cost  

To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:

Year     Cash flow     DF        Present value  

0           487,000 × 1          = (487,000)

1          157,000 × 1.07^(-1) = 146,729.0

2         182,000 × 1.07^(-2) = 158965.8

  3         202,000 × 1.07^(-3) = 164,892.2

4         213,000  × 1.07^(-4) =162,496.7

Total PV for 2 years = 146729 +158965+164892= 470587.0

Balance of cash flow remaining to equal  =  487,000-470587 = 16413.0

 Discounted payback period = 3 years + 16413.0 /162,496.7 × 12 months

= 3year , 1.2months

Discounted payback period= 3 years 1 month

You might be interested in
a boy is three years younger than his sister. two years ago he was two-thirds of his sister's age. what are their present ages ​
padilas [110]

Answer:

The boy: 8 years old

The sister: 11 years old

Explanation:

We assume that the age at present of the boy is x (years old).

As he is younger than his sister 3 years, so that his sister's present age is great than x 3 years

=> Her present age is: x + 3 (years old)

Two years ago, the boy is younger than present two years

=> The boy's age two years ago is: x - 2 (years old)

Similarly, the sister's age two years ago is: (x+3)-2 = x + 1 (years old)

As given, two years ago he was two-thirds of his sister's age, so that we have:

<em>The boy's age two years ago = </em>\frac{2}{3}<em> × the sister's age two years ago</em>

⇒ x - 2 = \frac{2}{3}(x+1)

⇒ x - 2 = \frac{2}{3}x + \frac{2}{3}

⇒ x - \frac{2}{3}x =  \frac{2}{3} + 2

⇒ \frac{1}{3} x = \frac{8}{3}

⇒ x = \frac{8}{3}. 3 = 8

=> x + 3 = 8 + 3 = 11

So the present age of the boy is 8 years old, of the sister is 11 years old

5 0
3 years ago
What are the roles of agriculture is to maximize the production in the agricultural sector ? ​
Serhud [2]

Answer:

introduction of modern machines for harvesting

7 0
2 years ago
Cute Camel Woodcraft Company is considering a one-year project that requires an initial investment of $500,000; however, in rais
vfiekz [6]

Answer:

The correct answer is "32.076%".

Explanation:

Given:

Initial investment,

= $500,000

Cash inflows,

= $500,000

The floatation cost will be:

= 500,000\times 6 \ percent

= 30,000 ($)

The total cost will be:

= Initial \ investment+Floatation \ cost

= 500000+30000

= 530000

hence,

The rate of return will be:

= \frac{Inflows}{Cost} -1

= \frac{700000}{530000} -1

= \frac{700000-530000}{530000}

= 0.32076

= 32.076 (%)

8 0
2 years ago
An inventory system answers two important questions: when to order and how much to order. Which of the following statements corr
Sholpan [36]

Answer:

The answer is letter D

Explanation:

Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.

3 0
3 years ago
When the Central Bank lowers the bank rate, borrowing from the central bank becomes cheaper and commercial banks borrow more fro
tresset_1 [31]

Answer:

= All

Explanation:

= U.S. exports increase, shifting U.S. aggregate demand to the right

= U.S. exports increase, shifting U.S. aggregate demand to the right

7 0
2 years ago
Other questions:
  • Here is a question for you to practice your intuition... imagine a deluge in the city versus the forest. why does urbanization (
    14·1 answer
  • For the Mixing Department, unit materials cost is $8 and unit conversion cost is $12. If materials are added at the beginning of
    13·1 answer
  • Which of the following statements about social media is FALSE? Multiple Choice Social media can lead to hiring discrimination by
    7·1 answer
  • Which of the following tasks are NOT typically outsourced? Group of answer choices core business production noncore business acc
    10·1 answer
  • Mia likes to write books during her free time. At present, three of her books have been published and sold around the world. The
    10·2 answers
  • Define the terms:
    12·1 answer
  • If more capital is produced in a given year, what can be expected to happen?
    6·1 answer
  • Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?
    15·1 answer
  • when the price of good is RS4 the demand for the good is 25 units if the price increses to RS5 the demand falls to 15 units clac
    5·1 answer
  • 11. Which of these is an example of an element of a research report
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!