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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

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Krisp Systems decides to move production to a developing country where they are free to pump pollutants into the atmosphere with
Delvig [45]

Answer:

Environmental hazards and underdevelopment

Explanation:

Aware of existing policies to curb the careless release of pollutant to the atmosphere, relocating to developing country's amounts to refusal to pay taxes, cutting corners in order to make more profits and reduction in additional cost to operations. But most importantly, the company is not a promoter of the eradication of environmental hazards.

4 0
3 years ago
i make new beat every months and i record at least three songs in a month. how many beat i make in six months and how many song
Lady_Fox [76]

Answer:

36 songs.  12 beats.

Explanation:

7 0
3 years ago
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase wit
vodka [1.7K]

Answer:

1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D

Explanation:

Securities held to maturity --

It requires the positive intent as well as ability.

Unrealized holding gains and losses --

Reported for the income statement of trading securities.

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Reduces the investment account under an equity method if the fair value is higher than the book value.

6 0
3 years ago
Skinner Company began business on June 30, 2018. At that time, it issued 18,000 shares of $50 par value, 6% cumulative preferred
Stella [2.4K]

Answer:

2018

Preferred Dividend = $54,000

Common Stockholders = $9,000

2019

Preferred Dividend arrears =$54,000

Common Stockholders = $0

2020

Preferred Dividend = $54,000

Common Stockholders = $270,000

Explanation:

Preferred stockholders has an advantage that they are paid first when there is any dividend is announced. The residual dividend will be divided into the common stockholders. Any prior years due dividend and current years dividend associated with preferred share will be paid first.

As per given data

Preferred shares = 18,000 x $50 = $900,000

Preferred Dividend = $900,000 x 6% = $54,000

2018

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Dividend Allocated to Common Stockholders = Dividend Declared - Preferred Dividend = $63,000 - $54,000 = $9,000

2019

Dividend Declared = $0

Preferred Dividend Arrears = $54,000

2020

Dividend Declared = $378,000

Preferred Dividend Arrears = $54,000

Dividend Allocated to Common Stockholders = Dividend Declared - Preferred Dividend - Preferred Dividend Arrears = $378,000 - $54,000 - $54,000 = $270,000

3 0
3 years ago
Which of the following types of organizational cultures is power-oriented and headed by a leader who is regarded as a caring par
Brilliant_brown [7]

<u>Answer:</u>

<u><em>(B) The family culture </em></u><em> is power-oriented and headed by a leader who is regarded as a caring parent</em>

<em></em>

<u>Explanation:</u>

Family is likewise critical to how an individual grows in diverse cultures; a family shapes its very own one of a kind culture, that is, its "family culture". This family culture impacts individuals from the family because the way of life of a family shows people how to deal with strife, tune in, learn controls, and convey as a rule. These components affect how an individual carries on towards other relatives and others in the public arena and is based on what their families educate them.

7 0
3 years ago
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