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Rainbow [258]
1 year ago
8

Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufac

turers of tractors. The outlay required is $384,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $510,000 $360,000 2 510,000 360,000 3 510,000 360,000 4 510,000 360,000 5 510,000 360,000 Required: 1. Compute the payback period for the NC equipment. Round your answer to two decimal places.
Business
1 answer:
Elodia [21]1 year ago
7 0

Answer:

2.56 years

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

payback period = amount invested / cash flows

cash flows = $510,000 - $360,000 = $150,000

$384,000 / $150,000 = 2.56 years

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Scott Peter’s bank granted him a single-payment loan of $3,250 to pay a repair bill. He agreed to repay the loan in 31 days at a
I am Lyosha [343]
After interest he will pay a total of 3631.88 back to the bank
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3 0
1 year ago
Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows: Direct material
Yakvenalex [24]

Answer:

It is cheaper to make the part in house.

Explanation:

Giving the following information:

Harrison Enterprises currently produces 8,000 units of part B13.

Current unit costs for part B13 are as follows:

Direct materials $12

Direct labor 9

Factory rent 7

Administrative costs 10

General factory overhead (allocated) 7

Total $45

If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.

To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.

Unavoidable costs:

Factory rent= 7

Administrative costs= 5

General factory overhead= 7

Total= 17

Now, we can calculate the unitary cost of making the product in-house:

Unitary cost= direct material + direct labor + avoidable administrative costs

Unitary cost= 7 + 5 + 5= $17

It is cheaper to make the part in house.

3 0
2 years ago
Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and
Rudiy27

Answer:

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

$15

Explanation:

Marginal revenue is the extra revenue produced from increasing sales of a single unit of the commodity. Marginal benefit is the income received by a business or entity when the creation and distribution of one extra or marginal product.

Marginal Benefit = New revenue - Old revenue

                            = ($40) - ($25)

                            =$15

So,the Marginal Benefit for Lionel's Lawn Care is $15 .

5 0
2 years ago
Ticket prices to a Kanye West concert increase from $40 to $60. As a result, ticket sales decrease from 50,000 to 40,000. The el
kramer

Answer:

.4

Inelastic

Explanation:

Elasticity of Demand = |%Change in Demand / %Change in Price|

%Change in Demand= |(40,000 - 50,000)/50,000| =  20%

%Change in Price = |(60 - 40)/40| = 50%

Elasticity of Demand = .2/.5 = .4 or 40%

.4 < 1 so Demand is Inelastic

4 0
1 year ago
If employees of Washburn guitars want to travel to Asia to meet with guitar craftspeople, what is the best choice of who to send
jasenka [17]

Answer:

The answer is "The group of a range of age, color, sexual orientation, financial backgrounds, employment and age differences".

Explanation:

In the given-question, the above answer is correct because the team represents a wide community of gender, ethnicity, gender identity, income levels, academic attainment, and also includes the disparities across generations, although diversity spans race and gender, and presentation must be granted to all types of people, that's why the diversity is a big factor in the visit.

3 0
2 years ago
Read 2 more answers
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