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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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Answer:

A.1830

B.$1397.75

Explanation:

A.Gross pay

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Gross pay = regular pay + overtime pay

= (40*30)+(14*30*1.5)

=1200+630

= $1830

Part B

B.Net pay

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Net pay = gross pay – social security tax – medicare tax – federal income tax

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7 0
3 years ago
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AnnyKZ [126]

Answer and Explanation:

The calculation of the adjusted price that could use for these two comps in a CMA is given below:

For Comp property A, the value of the garage should be

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And, for comp property B, the value of the pool should be

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4 0
3 years ago
LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to
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Answer:

$739.72 ≈  739.72

Explanation:

we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])

  • fv = $1,000
  • pmt = $1,000 x 7.25% x 1/2 = $36.25
  • nper = 60
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=PV(5%,60,36.25,1000) = -739.72 since excel calculates the initial investment, it is always negative, so we just change the sign.

6 0
3 years ago
Charging someone higher interest on a loan because they missed a payment in the past is:
posledela

Answer:D

Explanation:

6 0
2 years ago
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Answer:

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