Answer:
C) 4.2 years
Explanation:
The computation of the payback period is as follows;
As we know that
Payback Period = Initial cost ÷ Annual net cash flow
Here
Initial cost = $278000
Annual net cash flow = Incremental after tax + Depreciation per year
where,
Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life
= ($278,000 - $30,000) ÷ 8 years
= $31,000
Annual net cash flow is
= $35000 + $31000
= $66000
So,
Payback Period is
= $278000 ÷ $66000
= 4.2 Years
Answer:
Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.
For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.
Initial outlay $100
NCF year 1 = $40
NCF year 2 = $40
NCF year 3 = $40
Using the real discount rate, the NPV = $8.93
Using the nominal discount rate, the NPV = -$0.53
Answer:
True
Explanation:
Workplace coercion is used to alter the belief system and values of an organisation. It creates unhealthy work environment. In workplace coercion strength and power are used to force employees to increase productivity. It can also include threats. Such tactics are used to get better results from employees.
It workplace coercion continues for a long time it can demoralise the employees. It is also problematic for the organisation to use its human resources effectively.
Although employees try to adapt and learn the work, coercion can lead to absences.
He saves Rs. 67.5 (take 450 times .85- since its a % and then subtract that from 450)
The invention of (cash register) addressed two challenges faced by department store owners in the late 19th century: creating detailed sales records and embezzlement by employees.
