1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
serg [7]
3 years ago
5

Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh

ich has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.): Sales $ 500,000 Less cash variable expenses 200,000 Contribution margin 300,000 Less fixed expenses: Fixed cash expenses $ 150,000 Depreciation expenses 45,000 195,000 Net operating income $ 105,000 The company's required rate of return is 12%. The payback period for this project is closest to: Multiple Choice 3 years 9 years 4.28 years 2 years
Business
1 answer:
Tems11 [23]3 years ago
5 0

Answer:

Payback period = 3 years

Explanation:

<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>

<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as:  </em>

<em>Payback period =The initial invest /Net cash inflow per year </em>

The cash inflow = Net operating income + Depreciation

                          = 105, 000 + 45,000 = 150,000

Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.

Payback period = 450,000/150,000

                          = 3 years

Payback period = 3 years

You might be interested in
If you ever need to file for bankruptcy, you should get the help of...
mina [271]
The awnser is A.) 
I have done research and all ive seen is to get the court to file bankruptcy
6 0
3 years ago
Read 2 more answers
​(Perpetuities​) What is the present value of the​ following? a. A ​$ perpetuity discounted back to the present at percent b. A
mrs_skeptik [129]

Answer:

The present value of a perpetuity is calculated as follows:

= Cashflow / Discount rate

a. Present value of $400 perpetuity discounted at 15%

= 400 / 0.15

= $2,666.67

b. Present value of $3,000 perpetuity discounted at 19%

= 3,000 / 0.19

= $15,789.47

c. Present value of $110 perpetuity discounted at 16%

= 110 / 16%

= $687.50

d. Present value of $60 perpetuity discounted at 12%

= 60 / 0.12

= $500

6 0
3 years ago
Knoll Company started Year 2 with a $1,000 balance in its Cash account, a $200 balance in its Supplies account and a $1,200 bala
Eddi Din [679]

Answer:

$750

Explanation:

Calculation to determine what the amount of supplies expense reported on the Year 2 income statement is:

Using this formula

Supplies expense=Balance in Supplies account

+Cash paid to purchase supplies)-Supplies on hand

Let plug in the formula

Supplies total amount =($200 + $600) -$50

Supplies total amount=$800-$50

Supplies total amount=$750

Therefore the amount of supplies expense reported on the Year 2 income statement is:$750.

8 0
3 years ago
How can a business meet customer needs​
san4es73 [151]
Bring in new products or services, introduce deals and sales, help local charities
7 0
2 years ago
The 2010 census allowed individuals to self-select their race. approximately _____ percent of americans identified themselves as
julsineya [31]
I believe it is B. 7.4
6 0
3 years ago
Other questions:
  • Qs 14-2 fixed and variable costs lo c2 a cell phone company offers two different plans. plan a costs $80 per month for unlimited
    11·1 answer
  • You own 180 shares of stock in Halestorm, Inc., that currently sells for $82.45 per share. The company has announced a dividend
    6·1 answer
  • CopperCore Inc., a U.S. business, took a 31 percent equity interest in Javier Holdings, a family business based in Spain. Accord
    5·1 answer
  • In a perfectly competitive market, all producers sell goods or services. Additionally, there are buyers and sellers. Because of
    13·2 answers
  • Suppose that in a certain community, 40% of the residents would answer "yes" to the question, "do you know the names of at least
    7·1 answer
  • Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,100 client-visits,
    12·1 answer
  • The following are the unit costs of making and selling an item at a volume of 30,000 units per month, which represents the compa
    7·1 answer
  • In 2020, Sunland Corporation incurred research and development costs as follows: Materials and equipment $116000 Personnel 13600
    14·1 answer
  • to insure goods to send them overseas it costs the exporter 5/2% of the value of the goods. if the goods are valued at 16.400$,
    5·1 answer
  • The setup time for a batch of 250 products is 30 minutes while the production time is 5 minutes for each product. If the batch s
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!