BUSINESS COLLEGE

initial cash investment of $388,000. The project will produce no cash flows for the first two years. The projected cash flows for years 3 through 7 are $69,000, $88,000, $102,000, $140,000, and $160,000, respectively. How long will it take the firm to recover its initial investment in this project?

Answers

Answer 1
Answer:

Answer:

6.92 years

Explanation:

The payback period measures how long it takes for the amount invested in a project to be recovered.

The total cost of the project is $388,000.

Because the project generates no cash flow in the first and second year , the amount recovered would be 0.

In the third year, the amount recovered of $388,000 is $69,000. This reduces the cost of the project to $319,000.

In the fourth year , the amount recovered is $88,000. This reduces the cost of the project to $231,000.

In the fifth year, the amount recovered is $102,000. This reduces the cost of the project to $129,000.

In the sixth year, the amount recovered is $140,000. This covers the cost of the project and generates a profit of $11,000.

The amount is recovered in the 6th year + 129000/ 140,000 = 6.92 years

I hope my answer helps you

Related Questions

ndicate whether the following items are "Included in" or "Excluded from" gross income. a. During the year, that the taxpayer purchased stock as an investment which doubled in value. b. Amount an off-duty motorcycle police officer received for escorting a funeral procession. c. While his mother was in the hospital, the taxpayer sold some of her jewelry at a gain to help pay for the hospital bills. d. Child support payments received. e. A damage deposit the taxpayer recovered when he vacated the apartment he had rented. f. Interest received by the taxpayer on an investment in general purpose bonds issued by IBM. g. Amounts received by the taxpayer, a baseball "Hall of Famer," for autographing sports equipment (e.g., balls and gloves). h. Tips received by a bartender from patrons. (Taxpayer is paid a regular salary by the cocktail lounge that employs him.) i. Taxpayer sells his Super Bowl tickets for three times what he paid for them. j. Taxpayer receives a new BMW from his grandmother when he passes the CPA exam.
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On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,062,937 (an inputed rate of 10%). The goods have an inventory cost on Parnevik's books of $400,000. Required:Prepare the journal entries for Parnevik on (a) March 1, 2020, and (b) December 31, 2020.
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Adjusting and paying accrued wages LO P1Pablo Management has five part-time employees, each of whom earns $90 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the five employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year's Day. (January 1) was an unpaid holiday. 1. Prepare the year-end adjusting entry for wages expenses. 2. Prepare the journal entry to record payment of the employees' wages on Friday, January 4, 2018.

​Which of the following statements is most accurate? Group of answer choices ​Multimedia presentations are no longer used in the business world. Low-tech visual aids are not appropriate for the business world. ​Today's speakers rely exclusively on the use of multimedia slides in their presentations because they know that multimedia slides have no disadvantages. ​Effective speakers analyze their audience and the speaking occasion to help them determine what type of visual aid to use.

Answers

Answer:

The Correct Statement is the Second Statement. Effective speaker look consider the nature and the needs of audience and then decide the type of visual aid.

Explanation:

Multimedia slides are extremely useful, and often helps in various ways to deliver your message. There is no doubt in it.

However, you can't say multimedia slides are the "one best way" to present.

In certain cases, depending on the audience, you might not need and multimedia slide at all!

Maybe you'll just have to use your body language, act out a drama or even sing a song to convey the message to the audience.

And apart from that, it the times of technical failures, where you cannot use the computer or any electrical devices, you'll have to use traditional methods too.

Moreover, if the audience is not "tech-savvy" and are more of a traditional nature, then traditional or pen and paper based methods might just work out!

Answer:

Effective speaker look consider the nature and the needs of audience and then decide the type of visual aid.

i did this on ede 2020

Both product development strategies and diversification strategies involve ________. A. leaving the current market selling a company's B. current products developing a new product C. selling in a company's current market D. selling in new as well as existing markets

Answers

The options are:

A. leaving the current market selling a company's current products B. developing a new product C. selling in a company's current market D. selling in new as well as existing markets.

Answer:

B. developing a new product

Explanation:

Both when involved in product development strategy and diversification there will be development of a new product.

In product development strategy involves bringing new innovation to customers. New products that the market needs are developed.

In diversification strategy involves entering a new market and developing new product to get market share.

Both product development strategies and diversification strategies involveselling in new as well as existing markets. Hence option D is correct.

Both product development strategies and diversification strategies involve expanding a company's market reach. Product development strategies focus on introducing new products or improving existing products to target the company's current market.

On the other hand, diversification strategies involve entering new markets with either new or existing products. Both approaches aim to increase the company's market share and revenue by reaching new customers or expanding the offerings to existing customers.

Learn more about diversification here:

brainly.com/question/32814087

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Feb 26- received $300 from a customer as a down payment on work to be undertaken on repairs to a cell. Is that unearned revenue.

Answers

If that work is done than it's revenue or if the work is going to happen in future then it's unearned revenue.

Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.

Answers

Answer: See explanation

Explanation:

Based on the scenario in the question, the amount that the restaurant charge for the lunch excluding any tax will be calculated as:

= $15.40 × 100/(100 + 8)

= $15.40 × 100/108

= $1540/108

= $14.26

Sales tax will be:

= $15.40 × 8%

= $15.40 × 8/100

= $15.40 × 0.08

= $1.23

If you deposit $4,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.

Answers

Answer:

Present value (P) = $4,000

Interest rate (r) = 6% = 0.06

Number of years (n) = 5 years

FV = P(1 + r)n

FV = $4,000(1 + 0.06)5

FV = $4,000(1.06)5

FV = $4,000 x 1.338225578

FV = $5,353

Explanation:

The future value of the investment is a function of present value multiplied by 1 + interest rate raised to power number of years.

The research and development division of Anchor Inc., a manufacturing firm, has a sizeable number of engineers for its employees. The buying decisions related to the equipment to be used in the research and development of new technologies is primarily made by the engineers. Based on these traits, which of the following organization-specific factors is most relevant in the division's purchasing process? a. Monopolization
b. Segmentation
c. Orientation
d. Centralization

Answers

Answer:

The correct answer is letter "C": Orientation.

Explanation:

The primary organization-specific factors are orientation, size of the organization, and degree of centralization. Orientation refers to the function of a company that controls the decisions in regards to purchases. The size of the organization implies decision making will be more centralized in larger firms while more decentralized in smaller firms. Finally, the degree of centralization states that even in highly autonomous corporations, some purchases might be subject to the approval of a manager who confirms the need for the assets being acquired.

Because in Anchor Inc. the purchase decisions are made by engineers the orientation organization-specific factor is more relevant in that company.
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