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
Thepotemich [5.8K]
2 years ago
11

Lion Management Services is considering an investment of $75,000. Data related to the investment are as follows:

Business
1 answer:
irinina [24]2 years ago
8 0

Answer:

It will take 3.3 years to cover the initial investment.

Explanation:

Giving the following information:

Initial investment=$75,000

Year Cash Inflows

1 $20,000

2 23,000

3 17,000

4 50,000

5 20,000

<u>The payback period is the time required to cover the initial investment.</u>

Year 1= 20,000 - 75,000= -55,000

Year 2= 23,000 - 55,000= -32,000

Year 3= 17,000 - 32,000= -15,000

Year 4= 50,000 - 15,000= 35,000

To be more accurate:

(15,000/50,000)= 0.3

It will take 3.3 years to cover the initial investment.

You might be interested in
Is Faraj legally required to pay this additional amount in this case? Melissa Faraj owns a lot and wants to build a house accord
lubasha [3.4K]

Answer:

The issues that arises between the Faraj and Siegel can be discussed by three different groups in resolving the contract agreement.

Note: Kindly find an attached copy of the complete question below.

Explanation:

Solution

In this case between Faraj and Siege'ls building contractors the following issue are discussed by three groups as follows:

(1) The contractor can increase the price of finishing construction based on inflation and the cost of raising materials during inflation prices for the materials increases or goes up and this will affect the customer gradually.

(2) Faraj will not pay the additional amount requested by Siegel because according to the contract the amount she has to pay is $153,000

(3) Issues or problems that might come up during construction is listed below:

  • Poor communication
  • Not feasible or impractical forecasting
  • The unavailability of structure

3 0
2 years ago
Which of the following activities of the central bank do not constitute monetary​ policy? A. Monitoring key stock prices. B. Mon
charle [14.2K]

Answer: Please refer to Explanation

Explanation:

1. A. Monitoring key stock prices.

This does not fall under what the Central Bank does when Monetary Policy is implemented. Monetary Policy allows the government to influence interest rates, monitor financial institutions and indirectly control money supply.

2. Low and predictable levels of inflation.

Under the mandate of PRICE STABILITY, the Fed aims to ensure low and Predictable inflation in the long run to preserve the purchasing power of money.

3. Management of interbank transfers.

The Fed monitors and manages Interbank transfers to protect the financial system.

4. Management of Macroeconomic fluctuations.

- The Fed just embarked on monetary policy to correct the Economy. This was a Macro Economic function as it dealt with the entire economy as a whole.

5. Regulation

The Fed acts as the regulator of Banks and ensures that they follow certain practices and rules to ensure the safety of the banking system and the money belonging to the people who put it there.

5 0
2 years ago
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $4,800, $9,800, and $
Harrizon [31]

Answer:

$23,977.29

Explanation:

In order to determine how much Marko would be willing to pay, we have to calculate the present value of the ABC Co.

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator:

Cash flow in year 1 =$4,800

Cash flow in year 2 = $9,800

Cash flow in year 3 = $16,000

I = 11%

Present value = $23,977.29

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0
2 years ago
Match to correct letter option
dusya [7]

Answer:

A. Money left over after taxes are paid - Disposable income

B. Quantity theory of money helps explain the shape of this - Real

C. Part of GDP s definition that captures the quality of goods and services - Market Value

D. Caused by a fall in the money supply - Final

E. Part of GDP s definition that means you exclude used goods and services - Real

F.  Sticky prices/wages justifies its shape - Final

G. Part of GDP s definition that means you exclude intermediary goods and services - Market Value

H. Used to make loans - Excess reserves

I. Used to cover withdraws - Disposable income

J. Interest rates are at their lower bound - Real

K. Represents the economy s fundamentals, such as population, capital, and technology - LRAS

L. Adjusted for inflation Final

M. Caused by a collapse of the stock market - Market Value

Explanation:

Long run aggregate supply is adjusted based on the products produced in the country. The supply rate is also adjusted based on demand factor. GDP is the monetary value of all goods and services produced in the country during a certain period.

5 0
2 years ago
DTO, Inc., has sales of $15 million, total assets of $12.6 million, and total debt of $5.6 million. Assume the profit margin is
Eva8 [605]

Answer:

There the company's net income is $1.2 million.

Explanation:

Solution

Given that:

The Profit Margin is = 8% of Sales

Thus

DTO Inc's Net Income will be 8% of $ 15 million =$ 1,200,000 or $ 1.2 million

=$15 million *8% = $1.2 million

(ROA) or Return on Assets  = Net Income / Total Assets

= $ 1.2 million / $ 12.6 million

= 9.52%

Then

Total Assets = Total Debt + Total Equity

So the Total Assets are $ 12.6 million, and the Total Debt is $ 5.6 million, then the Total Equity works out to $ 7 million.

=$12.6 million - $ 5.6 million

=$7 million

Hence

Return on Equity (ROE) = Net Income / Total Equity = $ 1.2 million / $ 7 million = 17.14%

7 0
2 years ago
Other questions:
  • Companies attempted to intimidate union organizers by
    14·2 answers
  • When the same attribute in related data files has different values, this is called data?
    9·1 answer
  • Barnes Company sells two products, X and Y. For the coming year, Barnes predicts sales of 5,000 units of X and 10,000 units of Y
    11·1 answer
  • Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
    7·1 answer
  • Flozell Adams is a professional football player formerly with the Dallas Cowboys. He submitted a claim in arbitration against hi
    11·1 answer
  • Suppose you invest $500 in a stock mutual fund at the end of each month. When you retire at the end of your 35-year career, your
    5·1 answer
  • How might a Walmart representative respond to the negative criticisms that might be brought up, and what other benefits could th
    12·1 answer
  • Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts payable and accrual
    14·1 answer
  • Central Valley Construction (CVC) purchased $80,000 of sheet metal fabricating equipment from Buffalo Supply on January 1, 20X1.
    9·1 answer
  • Your friends sees your answer #1 and assumes that each of those people has a high credit score . Why is your friend incorrect ?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!