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Usimov [2.4K]
2 years ago
6

You have decided to renovate your restaurant. You estimate that renovations will result in an extra $125,000 in sales per

Business
2 answers:
sdas [7]2 years ago
6 0

Answer: 14 years

Explanation:  Took test on KM and got it right

lozanna [386]2 years ago
5 0

Answer:

13.33 years

Explanation:

The time it takes for an investment to repay its initial investment if the payback period. For an investment project with regular cash flows, the formula for calculating the payback period is ;

Payback period =Initial investment/cash flows

In this case: Initial investment is $2,000,000.00

cash flow= extras sales per year plus saving on utilities

  = $125,000 + $25,000= $ 150,000

payback period = $ 2,000,000/ $ 150,000

      =13.33 years

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The Tamarisk Heritage Centre (a not-for-profit organization providing language and arts and crafts programs for children) receiv
tatiyna

Answer:

48,939 patients

Explanation:

Breakeven quantity = fixed cost / price – variable cost per unit

$239,800 / ( $8.70 - $3.80) = 48,939 patients

4 0
2 years ago
Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to te
Vesnalui [34]

Answer:

$3.5 million

Explanation:

Data given in the question

Book value of the division assets = $33.50 million

Fair value of the division assets = $30 million

The sum of estimated future cash flows generated = $38 million

So, by considering the above information, the amount of impairment loss is

= Book value of the division assets - fair value of the division asset

= $33.5 million - $30 million

= $3.5 million

Since the fair value is less than the book value so the difference should be recorded as an impairment loss

5 0
2 years ago
Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors and 5% are informed traders.
mojhsa [17]

Answer: a. 11.5%

Explanation:

Fad followers are those investors who follow a trend when it emerges and as such their betas will be less than that of informed traders because the informed traders would have acted first.

Using the Capital Asset Pricing Model to calculate expected return.

Er = Rf + b( Rm - Rf)

Er = Expected return

Rf = Risk Free Rate

b = Beta

Rm = Market Return.

The Expected Return for the Informed Investors is,

= 4% + 1.4 ( 10% - 4%)

= 4% + 1.4 ( 6%)

= 12.4%

With the Fad followed expected to have a lower beta and therefore a lower expected return than the Informed Investors, the only suitable option is the 11.5%.

3 0
2 years ago
Joe takes a dollar from the cash register every day and does not tell anyone about it. Sara’s cash register is $2 short because
KonstantinChe [14]
Well, obviously Sara is the better employee because she's being honest and tells the boss about her mistake. Joe is not a good employee, becuse he is stealing and doesn't tell anyone about it so, your answer is Sara is the better employee. Hope it helps!
6 0
2 years ago
Read 2 more answers
A company has the choice of either selling 1,000 unfinished units as is or completing them. The company could sell the unfinishe
professor190 [17]

Answer:

It is more convenient to sell the units unfinished by $500.

Explanation:

Giving the following information:

Units= 1,000

Unfinished:

Selling price= $4.00 per unit.

Complete:

Incremental costs= $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead

Selling price= $8.00 each.

We need to calculate the gross profit of each option and choose the more convenient:

Unfinished:

Gross profit= 1,000*4= $4,000

Complete:

Gross profit= 1,000*(8 - 4.5)= $3,500

It is more convenient to sell the units unfinished by $500.

5 0
2 years ago
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