The payback period for the investment made by Oriental Corporation would be <u>C. 4 years</u>.
<h3>What is the payback period?</h3>
The payback period is a capital budgeting tool that considers the length of time it takes to recover the investment cost using periodic cash inflows.
The technique shows the length of time an investment reaches a breakeven point (equal costs with equal cash inflows).
<h3>Data and Calculations:</h3>
Investment cash = $200,000
Annual net cash flows = $50,000
Life span = 10 years
Salvage value = $0
Discount rate = 10%
Payback period = 4 years ($200,000/$50,000)
Thus, the payback period for the investment made by Oriental Corporation would be <u>C. 4 years</u>.
Learn more about the payback period method at brainly.com/question/14316388
#SPJ1
Answer:
AFN = $138
Explanation:
the accounts and balances are missing, so I looked for a similar question:
The Booth Company's sales are forecasted to double from $1,000 in 2010 to $2,000 in 2011. Here is the December 31, 2010, balance sheet:
Cash $ 100 Accounts payable $ 50
Accounts receivable 200 Notes payable 150
Inventories 200 Accruals 50
Net fixed assets 500 Long-term debt 400
Common stock 100
Retained earnings 250
Total assets $1000 Total liabilities and equity $1000
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
- A/S: $500 / $1,000 = 0.50
-
ΔSales = $1,000
- L/S = $250 / $1,000 = 0.25
- PM = 0.08
- FS = $2,000
-
1 - d = 1 - 30% = 0.70
AFN = (0.5 x $1,000) - (0.25 x $1,000) - (0.08 x $2,000 x 0.7) = $500 - $250 - $112 = $138
<span>A nation seeking to increase its overall productivity might be best served by investing money into technology. Advances in technology which translates into a more productive economic activity as creation and delivery of goods and services are increased.</span>
Answer:
fall
rise
Explanation:
If the cost of resource x falls, it becomes cheaper to produce good y. This leads to an increase in supply of y. the supply curve of good y shifts out. As a result, equilibrium price falls and quantity rises