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3 years ago

Compute the payback period for each of these two separate investments:

Business

1 answer:

Gnesinka [82]3 years ago

4 0

Answer:

A. 1.89 years

B. 2.33 years

Explanation:

According to the scenario, computation of the given data are as follows,

(A) After-tax income = $72,115

Expected cost = $250,000

Useful life = 4 years

Salvage value = $10,000

Depreciation Value = ($250,000 - $10,000) ÷ 4 = $60,000

Annual net cashflow = After tax income + Depreciation

= $72,115 + $60,000 = $132,115

Payback Period = Machine expected cost ÷ Annual net cash flow

= $250,000 ÷ $132,115

= 1.89 years

(B) After-tax income = $39,000

Machine cost = $200,000

Useful life = 8 years

Salvage value = $13,000

Depreciation value = ($200,000 - $13,000) ÷ 4 = $46,750

Annual net cashflow = After tax income + Depreciation

= $39,000 + $46,750 = $85,750

Payback Period = Machine expected cost ÷ Annual net cash flow

= $200,000 ÷ $85,750

= 2.33 years

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Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who

Temka [501]

Answer: return on investment

Explanation:

The return on investment is a ratio that exists between the net profit and the cost of that particular investment. It should be noted that a high return on investment simply means that the profit of the investment compare favourably to the cost incurred for that investment.

Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of return of investment.

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3 years ago

On January 1, Parson Freight Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannuall

Minchanka [31]

Answer:

The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.

Explanation:

This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.

The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.

So, the appropriate journals to record this transaction is as provided above.

4 0

3 years ago

Are you a people person? Do you like to join clubs, help others, give instructions, influence decisions, or plan social events?

Montano1993 [528]

Answer:

Yes I do.

Explanation:

1. Serve others.

2. Plan a community bazar to gain founds and donate them to local foundations with social objetives.

3. Organize a cinema at park festival for help vulnerable population to enjoy and recreate different activities that they normally don't have access to.

4. Go to a geriatric and plan some activities like chess contest, dance and teather to help them to feel distracted of the loneliness for a while at least one a week.

5. Go to visit to somebody and prepared some cookies, talk to that person, listen to and enjoy of a great chat.

6. Paste some motivational notes in random places. (subway, restaurants, public bathrooms).

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4 years ago

Use the following data to determine the total amount of working capital from the Banner Auto Supplies Balance Sheet for December

Komok [63]

Answer:

b. 240,000

Explanation:

Calculation to determine the total amount of working capital

First step is to calculate the Current assets

Using this formula

Current assets = Cash + Accounts receivable + Inventory + Prepaid insurance

Let plug in the formula

Current assets= $70,000 + 100,000 + 140,000 + 80,000

Current assets= $390000

Second step is to calculate the Current liabilities using this formula

Current liabilities = Accounts payable + Salaries and wages payable

Let plug in the formula

Current liabilities= $130,000 + 20,000

Current liabilities= $75,000

Now let calculate the working capital using this formula

Working capital = Current assets - Current liabilities

Let plug in the formula

Working capital = $390,000 - 150,000

Working capital = $240,000

Therefore the Working capital is $240,000

4 0

3 years ago

Please help me w this one multiple choice question (Principles of Business (P.O.B.)

Leno4ka [110]

The correct answer to this question is choice A.

The definition of Imperfect Competition is when there is a situation in a market where there are features of a competitive market, but also characteristics of a monopoly. The other three choices are characteristics of a competitive market.

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4 years ago