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sasho [114]
3 years ago
13

A company is considering two mutually exclusive projects. The firm has a 12% cost of capital , has estimated the cash flows as b

elow: Project A Project B Initial Investment -$150,000 -$150,000 Year Cash Inflows 1 $ 45,000 $ 75,000 2 $ 45,000 $ 60,000 3 $ 45,000 $ 30,000 4 $ 45,000 $ 30,000 5 $ 45,000 $ 30,000 6 $ 45,000 $ 30,000 Calculate the payback period for each project. Which project is preferred according to this technique
Business
1 answer:
Novosadov [1.4K]3 years ago
6 0

Answer:

Project A = 4 years 4 months

Project B = 2 years 6 months

Explanation:

The payback period of a project is the length of time it takes for the cash flows to equal the amount of initial investment.

Project A ( $150,000) = $ 45,000 + $ 45,000  + $ 45,000 + $15,000 /  $ 45,000 x 12

                                    = 4 years 4 months

Project A ( $150,000) = $ 75,000 + $ 60,000  + $15,000 /  $ 30,000 x 12

                                    = 2 years 6 months

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A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage
sergiy2304 [10]

Answer:

e. 10,500 units.

Explanation:

<em>the equivalent units of production - direct materials</em>

<em>Note : Units in ending Work in Process inventory were 50% complete with respect to direct materials</em>

units in ending Work in Process inventory (5,000×50%)                = 2,500

units completed and transferred to the next stage (8,000×100%  = 8,000

Total                                                                                                    = 10,500

<em>the equivalent units of production - conversion costs</em>

<em>Note : Units in ending Work in Process inventory were 50% complete with respect to conversion costs</em>

units in ending Work in Process inventory (5,000×50%)                = 2,500

units completed and transferred to the next stage (8,000×100%  = 8,000

Total                                                                                                    = 10,500

5 0
3 years ago
According to Franks and Smallwood (2013), information has not become the lifeblood of every organization, and that an increasing
miskamm [114]

Answer:

B. False.

Explanation:

The above statement is false in that it asserts that information has not become the lifeblood of every organization. While it's true that an increasing volume of information today has increased and exchanged through the social networks and web2.0 tools like blogs, microblogs and wikisa, this further lends credence to the indispensability of information in this contemporary times.

In contrast, what Frank and Smallwood(2013) preached was that information has now become a lifeblood of every organization. This is an undisputed reality in their study and intellectual intervention. Thus, they went on give a demographic distribution of information through the use of social networks and/or web2.0 tools like blogs, microblogs, and wikisa.

6 0
3 years ago
A Swedish tour guide has devised a clever way for his clients to recognize him. He owns 13 pairs of shoes of the same style, cus
Bezzdna [24]

Answer:

P(13,2) = 169

Explanation:

We have to calculate the combinations for left and right shoe considering is not the same having a right shoe blue and left red than having a right shoe rend and a left red.

there are 13 pairs from whcih she will take a single pair:

P(n,r) = n^{r} \\

where:

n = number of pair = 13

r = shoes = 2 (one on each foot)

P(n,r) = 13^{2} \\

P(13,2) = 169

5 0
3 years ago
Tyson Corporation bought raw materials on April 23, 2012 and also on July 2, 2012. Products produced in the months of May were s
exis [7]

Answer:

2. the inventory acquired on April 23 with the products sold

Explanation:

Tyson Corporation

<em>As the company uses FIFO it would associate the sales with the inventory bought earliest. FIFO means first in first out the materials bought first would be sold first . The materials bought later would be sold later. In this situation the April 23 inventory is the first purchase so it would be associated with the products sold first in July. </em>

So option 2 is the best option indicating the first purchase sold first.

5 0
3 years ago
Read 2 more answers
Assume that the price of a European call expiring in six-month with a strike price of $30 is $2. Suppose that the underlying sto
Komok [63]

Answer:

correct option is c. $2.51

Explanation:

given data

strike price of $30 = $2

underlying stock price = $29

dividend = $0.50

risk-free rate = 10%

solution

we use here pit call parity  that is

c - p = s - k e^{-rt} -D    .....................1

S is current price and c is call premium and r is rate and t is time

so price of put p will be

p = c-s + k e^{-rt} + D

put here value and we get

p  = 2 -29 + 30  e^{-0.1*0.5} + 0.5  e^{-0.1*2/12}  + 0.5 e^{-0.1*5/12}

p  = 2.508

p = $2.51

so correct option is c. $2.51

8 0
3 years ago
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