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2 years ago

Exercise 13-8 Payback Period and Simple Rate of Return [LO13-1, LO13-6]

Business

1 answer:

andrew-mc [135]2 years ago

5 0

Answer:

4 years

Yes

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project to be recovered from the cumulative cash flow.

Cash inflow for the period = Net income + Net cash deductions (depreciation expenses)

$60,800 + $19,200 = $80,000

Payback period = amount invested / cash inflow

$320,000 / $80,000 = 4 years

If the payback period is five years or less, the project would be accepted because the amount invested would be recovered in 4 years. Therefore, the company would purchase the new games.

I hope my answer helps you

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Galvatron Metals has a bond outstanding with a coupon rate of 6.3 percent and semiannual payments. The bond currently sells for

monitta

Answer:

4.09%

Explanation:

For computing the after cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,

Present value = $1,919

Future value or Face value = $2,000

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The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

The present value come in negative

So, after applying the above formula,

1. The pretax cost of debt is 3.35% × 2 = 6.70%

2. And, the after tax cost of debt would be

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2 years ago

Which of the following statements is FALSE? a. Cause-and-Effect forecasting assumes that one or more factors are related to dema

Oduvanchick [21]

Answer:

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Quantitative methods involves getting insight from data by using formulas, models and other mathematical methods to draw conclusions. Facts and logic is used to make business decisions.

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Mitchell has worked for a very large company for three years. During lunch one day he stood at the elevator and read the buildin

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Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the pr

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Answer:

A. A smaller quantity of the goods bought and sold.

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