All categories

2 years ago

Polk Products is considering an investment project with the following cash flows:

Business

1 answer:

Andrei [34K]2 years ago

6 0

Answer:

b. 1.86 years

Explanation:

The computation of the project's discounted payback is shown below:-

Year Cash Flows Discounted CFs (at 10%) Cumulative

Discounted CFs

0 -$100,000 -$100,000 -$100,000

1 $40,000 $36,363.64 -$63,636.36

2 $90,000 $74,380.17 $10,743.80

3 $30,000 $22,539.44 $33,283.25

4 $60,000 $40,980.81 $74,264.05

Discounted Payback Period = Years before full recovery +

(Uncovered Cost at start of the year ÷ Cash Flow during the year)

Now we will put the values into the formula

= 1 + ($63,636.36 ÷ $74,380.17)

= 1 + 0.86

= 1.86 years

You might be interested in

Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. She received a total of $.75 in

kogti [31]

Answer:

c and e

Explanation:

4 0

2 years ago

Everything Looks Like a Nail, Inc. is a manufacturing company that produces hammers. The company faces a number of different fix

nikitadnepr [17]

Answer:

a. Regulatory compliance costs - Fixed cost

b. Salaries of top management and key personnel - Fixed cost

c. Cost of metal used in manufacturing - Variable cost

d. Cost of wood used in manufacturing - Variable cost

e. Mortgage payments - Fixed cost

f. Industrial equipment costs - Fixed cost

g. Interest on debt - Fixed cost

h. Postage and packaging costs - Variable cost

Explanation:

The cost which is affected by the production of units is known as variable cost. The cost which does not vary with the units produced is fixed cost. Fixed cost does not change from period to period irrespective of level of output and is usually same for a certain period. It is easy to budget for fixed costs instead of variable cost. Variable cost changes every period and is based on company's output.

6 0

1 year ago

Read 2 more answers

Isabella needs to create a mini-presentation with her group for an advertising campaign project in her marketing class. What typ

Eva8 [605]

Answer: Social learning

Explanation:

Isabella is involved in social learning with her learning group, in preparation for her mini-presentation on an advertisement campaign.

Social learning involves a form of learning done in groups where ideas are exchanged and learning is enhanced.

5 0

2 years ago

Which of the following statements would best characterize someone who is not culturally competent in working with others from di

Zepler [3.9K]

Answer: The person fills "silence" during conversations

Explanation:

Culture is simply regarded as people's way of life. The way if life include their food, the kind of music they listen to, their religion, language, their beliefs, values etc.

Someone who is not culturally competent in working with others from different cultures would usually be silent during conversations. This is because the person doesn't know much about the culture and can't really be involved in the conversation.

6 0

2 years ago

Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted

kozerog [31]

Answer:

Answer is explained in the explanation below.

Explanation:

Solution:

According to the data given: This can be solved as following. (Note: we are not given income tax tables to calculate the accurate net pay. So, according to given information here. Following is the accurate one. )

Let's assume, a 6.2% tax rate for SS ( Social Security) and 1.45% tax rate on Medicare:

So,

Social Security = 6.2%

Medicare = 1.45%

Pay Per hour = $14.30

So, let's calculate Rhonda's Gross pay:

Gross Pay = Pay per hour x total number of hours

Gross pay = $14.30 x 80 hours

Gross Pay = $1,144

Now, calculate the Rhonda's Reduction for Social Security:

Rhonda's Reduction for Social Security = $1,144 x 6.2%

Rhonda's Reduction for Social Security = $70.928

Similarly, Rhonda' Reduction for Medicare:

Rhonda' Reduction for Medicare = $1,144 x 1.45%

Rhonda' Reduction for Medicare = $16.588

So Finally,

Rhonda's Take-home Pay for her first check will be = Gross pay - Rhonda's Reduction for Social Security - Rhonda' Reduction for Medicare

Rhonda's Take-home Pay for her first check will be = $1,144 - $70.928 - $16.588

Rhonda's Take-home Pay for her first check will be = $1,056.484

7 0

2 years ago