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AveGali [126]
3 years ago
14

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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Transmissions are delivered to the fabrication line five at a time. It takes two hours for transmissions to be delivered. Approx
Leokris [45]

Answer:

The Number of kanban card sets is 2.

Explanation:

c =  5

T = 2 hours

d = 3 vehicles/hour

N = d*T(1 + ss)/C

   = 3*2(1 + 0.30)/5

   = 1.56

Therefore, The Number of kanban card sets is 2.

5 0
3 years ago
Outsourcing some production is a means of supporting a constraint. Group of answer choices TRUE FALSE
lesya692 [45]

It is a false statement that outsourcing some process in production is a means of supporting a constraint.

<h3>What is an outsourcing?</h3>

An outsourcing refers to act of hiring external body to perform services that are normally performed in-house of the company by the employees.

Rather, the use of outsourcing some of production is intended to overcome some organization constraints.

Therefore, the statement is false.

Read more about outsourcing

<em>brainly.com/question/4456416</em>

3 0
2 years ago
Your​ company, which has a MARR of​ 12%, is considering the following two investment​ alternatives:
mote1985 [20]

Answer:

future worth:

project A  11,615.26

project B  12,139.18‬

It should choose project B as their future value is greater

IRR of project A: 13.54%

We should remember that the IRR is the rate at which the net value is zero thus, equals the inflow with the cash outlay

It is calculate with excel or financial calculator due to the complex of the formula.

Explanation:

Project A

We calculate the future value of the cash flow per year and cost as we are asked for future value. The salvage value is already at the end of the project life so we don't adjust it.

Revenues future value

C \times \frac{(1+r)^{time} -1}{rate} = FV\\  

C 15,000

time 8

rate 0.12

15000 \times \frac{(1+0.12)^{8} -1}{0.12} = FV\\  

FV $184,495.3970  

Expenses future value

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C 3,000

time 10

rate 0.12

3000 \times \frac{(1+0.12)^{10} -1}{0.12} = FV\\  

FV $52,646.2052  

Cost future value

Principal \: (1+ r)^{time} = Amount  

Principal 40,000.00

time 10.00

rate 0.12000

40000 \: (1+ 0.12)^{10} = Amount  

Amount 124,233.93

Net future worth:

-124,233.93 cost - 52,646.21 expenses + 184,495.40 revenues + 4,000 salvage value

future worth 11,615.26

Project B

cost:

Principal \: (1+ r)^{time} = Amount  

Principal 60,000.00

time 10.00

rate 0.12000

60000 \: (1+ 0.12)^{10} = Amount  

Amount 186,350.89

expenses 52,646.21 (same as previous)

revenues

C \times \frac{(1+r)^{time} }{rate} = FV\\  

C 24,000

time 7

rate 0.12

24000 \times \frac{(1+0.12)^{7} -1}{0.12} = FV\\  

FV $242,136.2815  

TOTAL

242,136.28 + 9,000 - 52,646.21 - 186,350.89 = 12,139.18‬

Internal rate of return of project A

we write the time and cash flow for each period.

Time Cash flow

0 -40,000

1 -3,000

2 -3,000

3 12,000

4 12,000

5 12,000

6 12,000

7 12,000

8 12,000

9 12,000

10 16,000

IRR 13.54%

Then we write on excel the function =IRR(select the cashflow)

and we got the IRR of the project

6 0
3 years ago
Why do​ long-run elasticities of demand differ from​ short-run elasticities? ​Long-run elasticities of demand differ from​ short
Ne4ueva [31]

Answer:

The correct answer is option D.

Explanation:

Long-run elasticities of demand differ from short-run elasticity. In the short period is more inelastic. This is because people take time to adjust their consumption habits. So if the time period people have to adjust to the price change is long, then the demand will be elastic.  

Durable goods can be used for a relatively long time. So they will have a less elastic demand.

3 0
3 years ago
Read 2 more answers
Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Bl
aleksandr82 [10.1K]

Answer:

Merger premium per share is equal to $2

Explanation:

Step 1. Given information.

  • 1500 shares outstanding
  • market price of 22
  • Blackstone has 2.500 shares
  • Outstanding price 38
  • Blackstone acquire Rudy's for $36.000

Step 2. Formulas needed to solve the exercise.

Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price

Step 3. Calculation.

Merger premium per share = ($36,000/1,500) - $22 = $2

Step 4. Solution.

Merger premium per share is equal to $2

8 0
3 years ago
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