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serg [7]
4 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]4 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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3 years ago
The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing res
wariber [46]

Answer:

To the first question: C)  C. There has been economic growth in our society.

To the second question: E). Economics.

Explanation:

To the first question:

A is false because there has been several recessions in the past 100 years

B is false because markets have failures, causing the recessions mentioned above.

D is false because there are still poor countries, and the concept of "invisible hand" isn't properly explained

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6 0
4 years ago
A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year. Its Accounts Payabl
Aloiza [94]

Answer:

$704,000

Explanation:

As we know that

Costs of goods sold = Beginning inventory + purchase made - ending inventory

$720,000 = $200,000 + purchase made - $188,000

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4 years ago
Joker Corporation owns 80% of Klue Corporation. Joker Corporation also owns 45% of Lion Corporation and 45% of Mark Corporation.
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Answer:

Option "C" is the correct answer to the following statement.

Joker, Klue, and Lion Corporations

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A group of controlled business is described as a community of two or more companies, businesses or firms.

Joker Corporation purchases 80%, 45% and 45% of Klue, Lion and Mark Corporation respectively.

Klue Corporation purchases 40% and 10% of Lion and Mark Corporation.

In this situation, Joker corporation is created a Parent-subsidiary relationship with other firms. where Klue corporation creates brother-subsidiary relation with  Lion and Mark corporation.

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