answer.
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
Paul [167]
2 years ago
9

Seattle Inc. identifies an investment opportunity, which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000

per year in Years 5 through 9, and $40,000 in Year 10. The initial cash outflow is $150,000, and the firm's required rate of return is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? (Round off the answer to two decimal places.)
Business
1 answer:
vladimir2022 [97]2 years ago
6 0

Answer:

the payback period = 4.86 years

Explanation:

Seattle's cash flows are as following:

Year                Cash flow                         Accumulated cash flows

0                     -$150,000                                -$150,000

1                         $30,000                                -$120,000

2                        $30,000                                 -$90,000

3                        $30,000                                 -$60,000

4                        $30,000                                 -$30,000

5                        $35,000                                    $5,000

6                        $35,000                                  $40,000

etc.

The payback period is between year 4 and 5:

  • 4 years + ($30,000 / $35,000) = 4.86 years or
  • year 4 + [($30,000 / $35,000) x 365 days] = 4 years and 313 days
You might be interested in
A stock is selling for $37.50 and is expected to pay a dividend of $3 at the end of the year. If investors expect a return of 14
azamat

Answer:

6%

Explanation:

Well this can be simply calculated by the formula i.e: P = D / r-g .

Here we have P, D and r, we have to find g.

Hence the formula becomes as:

g = 0.14 - (3 / 37.5)

g = 0.06 ~ 6%.

Hope this helps you. Good luck and Cheers.

3 0
2 years ago
Read 2 more answers
Pedro is using a blog to promote his Afro-Cuban band. His articles on topics ranging from his influences to the instruments used
german

Answer:

engagement, conversion

Explanation:

Blog refers to a web page run by an individual or small group with the purpose of marketing. Blog targets to the specific audience.

In the given question,

Pedro is using a blog to promote his Afro-Cuban band. His main purpose is to bring people to the online store where they can purchase CDs.

For Pedro, the two most important measurements he tracks are <u>engagement</u> and <u>conversion</u>

8 0
2 years ago
Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price
madreJ [45]

Answer:

Differential analysis as at April 30

                                            Make (Alternative 1)  Buy (Alternative 2)

Purchase Price                                $0.00                     $24.00

Direct materials                               $8.00                       $0.00

Direct labor                                     $12.00                      $0.00

Variable Costs - Case related         $3.00                      $0.00

Total Cost                                       $23.00                    $24.00

Conclusion

Company should make carrying cases instead of purchasing as this is cheaper by $1.00

Explanation:

There is a choice to be made between Make (Alternative 1) and Buy (Alternative 2). Compute the Total costs for these choices.

Ignore the fixed overheads as they are the same for both alternatives and hence irrelevant.

Choose the alternative with lower costs.

3 0
2 years ago
When comparing the three broad types of economic systems, it can be said that for a pure market economy to function efficiently,
Alexeev081 [22]

Answer:

These statements are correct:

In a command economy, state-owned enterprises have little incentive to control costs and be efficient.

In a command economy, the absence of competition means that state-owned enterprises do not have incentive to be efficient. This is because In command economies, these companies are most of the time monopolies who have a safer market to sell their products, because consumers lack choice.

Mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.

Most economies now are mixed: in part free market economies, in part command economies. For example, in most developed countries, most sectors are left for private companies to compete, but a few areas are still directly controlled by the government, either fully or partially (for example: the healthcare sector, and education).

3 0
2 years ago
Julie wants to open a bank account with $75. julie estimates that she will write 20 checks per month and use her atm card at the
Neporo4naja [7]

This will ultimately depend on the bank, but no matter what it is important to look at fees, locations, services, and interest rates when considering your next bank.

7 0
2 years ago
Other questions:
  • Mary works in the accounting department of new trends sales company. her job includes reviewing expense reports submitted by man
    6·1 answer
  • When data can flow across a cable in both directions, this is known as _____ communication?
    8·1 answer
  • Which of the following statements concerning a process cost accounting system is false? A. The units in beginning inventory plus
    5·1 answer
  • A manager that primarily focuses on the shareholders of the corporation rather than all of the vested parties in the businesses
    13·2 answers
  • Currency exchange rates are based on _____.
    13·2 answers
  • Which of the following events must cause equilibrium quantity to fall? a. demand increases and supply decreases b. demand and su
    6·1 answer
  • Tom Owens has made a presentation to his prospect, Zero Enterprises. No matter how he has tried to move the call forward, he has
    9·1 answer
  • The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $
    15·1 answer
  • On December 31, Lowland, Inc., converts its $900,000 par value bonds (carrying value also $900,000) into 90,000 shares of $6 par
    6·1 answer
  • A conventional mortgage loan closed on July 1 for $165,000 at 3.75% interest amortized over 25 years at $857.06 per month. Using
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!