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AveGali [126]
4 years ago
14

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

Business
1 answer:
KengaRu [80]4 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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Some global corporations are large enough to create major changes in the external environment. Group of answer choices True Fals
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Some global corporations are large enough to create and influence major changes in the external environment: False.

<h3>What is a corporation?</h3>

A corporation refers to a corporate organization that has facilities and owns assets that are used for the production of goods and services in at least one country, other than its headquarter which is located in its home country.

However, it is false to infer or state that some global corporations are large enough to create and influence major changes in the external environment.

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2 years ago
Which business is exempt from using the accrual basis for accounting? A clothing manufacturer that has average gross annual rece
AnnZ [28]

Answer:

A home improvement store that just began business last year and had $2.7 million in gross receipts.

Explanation:

The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:

  1. Partnership or C corporation with less than $5 million in total sales revenue per year
  2. Sole proprietorship or S corporation with less than $1 million in total sales revenue
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3 0
3 years ago
Your factory has been offered a contract to produce a part for a new printer. The contract would last for three? years, and your
emmasim [6.3K]

Answer and Explanation:

As per the data given in the question,

                  ($ million)                             ($ million)

Year Cash flows PVF at 8.2% Present value

0         -8.05             1                   -8.05

1          5.08             0.9242   4.70

2          5.08            0.8542           4.34

3           5.08             0.7894   4.01

Net present value                4.99

   

Internal rate of return                  0.40

Net present value = $4.99 million

The project should be accepted

Yes, The IRR rule is agree with NPV.

Please find the attachment for better understanding

3 0
4 years ago
How to calculate a trial balance​
zhannawk [14.2K]

Answer:

Here is the answer

hope it helps u

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<h2>( ^_^ ) </h2><h2 /><h2 /><h2>BTS ARMY GIRL ( 방탄소년단 )</h2>

5 0
2 years ago
Lopez Corporation incurred the following costs while manufacturing its product.
grandymaker [24]

Answer:

$358,150

Explanation:

Cost of goods manufactured is calculated in a Schedule of Manufacturing Costs as follows :

Cost of goods manufactured = Beginning Work In Process + Total Manufacturing Costs - Ending Work In Process

where,

Total Manufacturing Costs :

Materials used in product              $124,260

Depreciation on plant                     $69,650

Property taxes on plant                   $21,750

Labor costs of assembly-line        $120,570

Factory supplies used                     $25,810

Total                                               $362,040

therefore,

Cost of goods manufactured = $13,700 +   $362,040 - $17,590 = $358,150

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3 years ago
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