Answers
a Calculation of Cash Payback Period Answer Cash Payback Period $56,800/ $8,000 7.1 years Calculation of Net Present Value Cash 8% Discount Present Flows Value Factor х $8,000 $45,973 Present Value of Net Annual Cash Flows 5.74664 х Present Value of Salvage Value $27,700 $14,965 0.54027 х $60,939 Less: Capital Investment ($56,800) $4,139 Net Present Value b The Company does not meet the company's cash payback criteria. The project would have to have a cash payback period of less than (8 years/ 2) 4 years. So it does not meet this criteria. Company has meet the Net Present Value Criteria, so the Company should accept the Project
.
Similar Solved Questions
1 answer
You can invest in taxable bonds that are paying a yield of 8.2 percent or a...
You can invest in taxable bonds that are paying a yield of 8.2 percent or a municipal bond paying a yield of 6.75 percent. Assume your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond? (Round your answer to 2 decimal places. (e.g., 32.16) b. Which securi...
1 answer
Determine the moment of inertia I_ of the shaded area about X axis Determine the moment...
determine the moment of inertia I_ of the shaded area about X axis Determine the moment of Inertia I of the shaded Area about X axis. sin t ein kuin r= 2in...
1 answer
An object with a mass of #7 kg# is hanging from a spring with a constant of #3 (kg)/s^2#. If the spring is stretched by # 7 m#, what is the net force on the object?
An object with a mass of #7 kg# is hanging from a spring with a constant of #3 (kg)/s^2#. If the spring is stretched by # 7 m#, what is the net force on the object?...
1 answer
There are four ways to divide a cost amount products or divisions. ABC elevates one of...
There are four ways to divide a cost amount products or divisions. ABC elevates one of these methods. What are the methods and why could ABC be correct for an organization?...
1 answer
The raw score prediction on the variable for persons with z scores on the predictor variable...
The raw score prediction on the variable for persons with z scores on the predictor variable of -2 is ? Student family goal. Work goal A. 7 4 B. 5 3 c. 9 2 D. 3 9 E. 4 1...
1 answer
The __________ gland produces hormones? The medical term that means material within the cell membrane which...
The __________ gland produces hormones? The medical term that means material within the cell membrane which is not part of the nucleus? The term __________ means towards the head? Example of a bloodborne transmission is ___________? The midsagittal plane is called the ___________? What genetic disor...
1 answer
A 9.40 L container holds a mixture of two gases at 37 °C. The partial pressures...
A 9.40 L container holds a mixture of two gases at 37 °C. The partial pressures of gas A and as B. respectively, are 0.323 atm and 0.852 atm. If 0.170 mol of a third gas is added with no change in volume or temperature, what will the total pressure become? P ....
1 answer
Laboratory Report - The Molar Volume of a Gas Experiment 9: The Molar Volume of a...
Laboratory Report - The Molar Volume of a Gas Experiment 9: The Molar Volume of a Gas Data 285 ml Run 1 Run 2 weight of magnesium 0.15g incl 21. 8 Ĉ temperature of the water (temperature of the hydrogen) in °K 315-8 K volume of water displaced (volume of hydrogen collected) V 285 ML atmosph...
1 answer
A responsibility centre is broadly defined as any part of an organization whose manager has control...
A responsibility centre is broadly defined as any part of an organization whose manager has control over and is accountable for cost Select one: O True O False...
1 answer
Holt Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of...
Holt Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of 22% for 2 years followed by a constant rate of 4% thereafter. The firm's required return is 10%. How far away is the horizon date? The terminal, or horizon, date is the date when the growth rate b...
1 answer
PYTHON REQUIRED Bonus (4 points): Why was 6 afraid of 7? Because 7 89! Actually, this...
PYTHON REQUIRED Bonus (4 points): Why was 6 afraid of 7? Because 7 89! Actually, this is mathematically impossible. "Cannibal numbers" as they're called can only eat numbers that are smaller than them, or the same size. After eating another number, the number that gets eaten disappears,...
1 answer
For a standard normal distribution, please find; P(z < c) = 0.646 What is C?
For a standard normal distribution, please find; P(z < c) = 0.646 What is C?...
1 answer
Question 11 2 pts Gordon Company sold 2,000 more units than budgeted of its only product....
Question 11 2 pts Gordon Company sold 2,000 more units than budgeted of its only product. How will ota fxed cost be affected? O Remain constant O Decrease by same percentage as sales increase. O Increase by same percentage as sales increase ODecrease $2,000. OIncrease $2,000 2pts Question 10 2 pts A...
1 answer
о от сорта със MULTIPLE IRRS AND MIRR A mining company is deciding whether to open...
о от сорта със MULTIPLE IRRS AND MIRR A mining company is deciding whether to open a strip mine, which costs $2 million. Cash inflows of $13.5 million would occur at the end of Year 1. The land must be returned to its natural state at...
1 answer
Based on the following operating data, the operating leverage is (Round your answer to 2 decimal...
Based on the following operating data, the operating leverage is (Round your answer to 2 decimal places): Sales Variable costs Contribution margin Fixed costs Income from operations $750,000 389,000 361,000 139,000 $222,000 Multiple Choice 163 2.08 108 3.38...
1 answer
A firm producing hockey sticks has a production function given by . In the short run,...
A firm producing hockey sticks has a production function given by . In the short run, the firm's amount of capital equipment is fixed at K = 100. The rental rate for K is $1 and the wage rate for L is $4. a. What is the firm's fixed rate cost? b. What is the firm's total cost function, ...