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3 years ago

Problem 24-6A Payback period, break-even time, and net present value LO P1, A1

Business

1 answer:

KengaRu [80]3 years ago

6 0

Answer:

1. Payback period = 2.8 years

2. Break-even time = 3.8 years

3. NPV = $12,577

Explanation:

NOTE: See the attached excel file for the calculation tables.

1. Determine the payback period for this investment.

Payback period = 2 years and [(49,600 / 70,800) * 12] months = 2 years and 8 months approximately = 2.8 years.

2. Determine the break-even time for this investment.

Break-even time = 3 years and [(23,622 / 36,199) * 12] months = 3 years and 8 months approximately = 3.8 years

3. Determine the net present value for this investment.

Net present value (NPV) of this investment is $12,577

Download xlsx

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Suppose that without specialization, Iran produces 4 barrels of oil and 6 bottles of olive oil, and Iraq produces 4 barrels of o

Elza [17]

Answer:

With specialization Iran will be able to consume 1.7 bottles of olive oil.

Explanation:

Iran produces 4 barrels of oil and 6 bottles of olive oil.

Iraq produces 4 barrels of oil and 4 bottles of olive oil.

The opportunity cost of producing a barrel of oil for Iran

= $\frac{6}{4}$

= 1.5

The opportunity cost of producing a barrel of oil for Iraq

= $\frac{4}{4}$

= 1

Iraq has a lower opportunity cost for producing oil so we can say it has a comparative advantage in producing oil.

The opportunity cost of producing a barrel of olive oil for Iran

= $\frac{4}{6}$

= 0.66

The opportunity cost of producing a barrel of olive oil for Iraq

= $\frac{4}{4}$

= 1

Iran has a lower opportunity cost for producing olive oil so we can say it has a comparative advantage in producing it.

The terms of trade with specialization are 4 barrels of oil for 4.3 bottles of olive oil, and that 4 barrels of oil are indeed traded for 4.3 bottles of olive oil.

Without trade, Iran is consuming 4 barrels of oil and 6 bottles of olive oil.

With specialization, Iran will be able to consume

= 6 - 4.3

= 1.7 bottles of olive oil

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3 years ago

Four years ago, a popular sandwich company used to sell 12-inch roast beef subs for only $5.49, but the same product now sells a

Ainat [17]

Answer:

6.22%

Explanation:

Price of sandwich four years ago, Present value = $5.49

Price of sandwich, Future value = $6.99

It is given that the inflation has been assumed to be constant over these four years.

Inflation rate refers to the rate at which prices of the good increases from the previous level. In a simple language, if there is a rise in the price of the goods then this economy is experiencing a inflation.

Inflation rate:

$=(\frac{Future\ value}{Present\ value}) ^{\frac{1}{n} } -1$

$=(\frac{6.99}{5.49}) ^{\frac{1}{4} } -1$

= 1.0622487 - 1

= 0.0622487 or 6.22%

Therefore, the inflation rate is 6.22%

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3 years ago

The annual percentage rate on a credit card determines

Digiron [165]

My answer -

it determines how much they charge you in interest if you carry a balance. Lower is better. The percentage interest is what they charge you each month, “annual percentage rate” is what you’re paying if you keep that balance for a year. It’s slightly different because in that year, you’re also paying interest on the amount of interest (compound interest) you owe in the previous months.

Not carrying a balance means that you don’t pay interest.

p.s

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3 years ago

A new client of the member firm has just opened a margin account. After account approval, the client's initial trade is an order

Aleks04 [339]

Answer:

$2,000

Explanation:

Data provided in the question

Number of shares purchased = 100 shares

Price of common stock = $25

Given percentage = 50%

Based on the above information, there is no borrowing taken place in a margin account because there is a minimum requirement to maintain $2,000 in equity and when the purchase is made lower than $2,000 so it is important to pay the amount in full and the deposits are important when it is made more than $2,000 in the case when the trade is more than $4,000

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3 years ago

The difference between part-time work and job sharing is that a. people in job-sharing positions still receive benefits because

Helga [31]

Answer:

b. jobs that are classified as part-time are jobs that can be done in a shorter amount of time than that of a full-time job, whereas job sharing creates one full-time position out of two part-time employees

Explanation:

Based on the scenario been described, we can say that the difference between part time job and job sharing is, jobs that are classified as part-time are jobs that can be done in a shorter amount of time than that of a full-time job, whereas job sharing creates one full-time position out of two part-time employees, so option b is the correct answer. In part-time job, job are done in short period of time, whereby the employee will come and do his/her job within a short period of time and leave, while job sharing is a full time job but is been shared among full time employees to do their turns.

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3 years ago

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