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lidiya [134]
2 years ago
12

Rico Petricelli Industries invests $960,000 in plant assets with an estimated 10-year service life and no salvage value. These a

ssets contribute $64,000 to annual net income when depreciation is computed on a straight-line basis. Compute the payback period and explain your computation.
Business
1 answer:
Nesterboy [21]2 years ago
5 0

The payback period for this Rico Petricelli Industries' investment is 6 years.

Data and Calculations:

Cost of investment in plant assets =$960,000

Estimated useful life = 10 years

Estimated salvage value = $0

Annual depreciation = $96,000 ($960,000/10)

Annual net income = $64,000

Annual cash net inflow = $160,000 ($64,000 + $96,000)

Payback period = 6 years ($960,000/$160,000)

Thus, to compute the payback period as 6 years, add the annual depreciation to the annual net income to obtain the annual cash net inflow.  Then divide the cash outlay ($960,000) by the product above.

Learn more: brainly.com/question/17109529

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A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as p
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Answer:

Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.

Explanation:

The visual appearance is both non rival and non excludable I.e. Pure public good

Benefit is 17*490=8.330

Benefit is greater than cost so college administrators should undertake the beautification initiative

7 0
3 years ago
How does a manufacturer set his or her total output to maximize profit?
strojnjashka [21]

A manufacturer would need to find the production quantity where the marginal rate of return equals marginal costs (this is called the equilibrium point). This would be the point where profits are maximized.

5 0
3 years ago
When doing business in _____, it is important to understand that potential customers want to develop a personal relationship bef
MA_775_DIABLO [31]

Answer: Latin america

Explanation: The following case relates to international management activities. The business and management styles of the organisations changes with the change in the culture of the country in which the business is to be done.

In Latin america, the word of mouth is considered to be more important than the paper contracts. The firms around the coutry wants to ensure that the other party is reliable. The dinner is the country usually happens late in 9AM  and discussions is don on the dinner.

Hence from the above we can conclude that the correct answer is latin america.

3 0
3 years ago
Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75
soldi70 [24.7K]

Answer:

5,182 Units

Explanation:

The computation of additional units is given below:-

Operating income = Contribution Margin Per unit × Units - Fixed cost

= ($4.50 - $1.75) × 29,000 - 8,500

= $71,250

Operating income is increased by 20%

Operating income = $71,250 × 1.20

= $85,500

So, per units

$85,500 = ($4.50 - $1.75) × Units - 8,500

= $94,000 ÷ 2.75

= 34,181.82

Additional Units

= 34,181.82 - 29,000

= 5,182 Units

8 0
3 years ago
Suppose two workers could be hired, F and G, and they take the same time to complete tasks as the current five workers. F and G
Ymorist [56]

Answer:

Explanation:

The missing table is attached below.

Recall that:

The capacity of the interaction is controlled by the capacity of the bottleneck workers.

The extra resources accessible ought to be added to workers with the most noteworthy preparing times.  

For this situation, they are Worker A and Worker E.  

Summing up of resources halves the handling times for Worker A and E.

SO;

Worker    Old time(sec)    New time (sec)   Capacity  

A                65                       32.5                     1.85

B                 35                       35                        1.71

C                 25                       25                        2.40

D                 30                       30                        2.00

E                  60                       30                       2.00

Along these lines, the new capacity of the framework is characterized by new bottleneck B.  

So the capacity of the cycle is 60/35 = 1.71 toothbrush per each minute

6 0
2 years ago
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