1 answer

Required information Exercise 13-8 Payback period and Simple Rate of Return (LO13-1, LO13-6) [The following information...

Question:

Required information Exercise 13-8 Payback period and Simple Rate of Return (LO13-1, LO13-6) [The following information appliComplete this question by entering your answers in the tabs below. Req 1A Reg 1B Compute the pay back period associated with

Required information Exercise 13-8 Payback period and Simple Rate of Return (LO13-1, LO13-6) [The following information applies to the questions displayed below.] Nick's Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $175,000, have a fifteen-year useful life, and have a total salvage value of $17,500. The company estimates that annual revenues and expenses associated with the games would be as follows: $200,000 Revenues Less operating expenses: Commissions to amusement houses Insurance Depreciation Maintenance Net operating income $80,000 25,000 10,500 60,000 175,500 $ 24,500 Exercise 13-8 Part 1 Required: 1a. Compute the pay back period associated with the new electronic games. 1b. Assume that Nick's Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Compute the pay back period associated with the new electronic games. Payback Period Years < Req1A Reg 1B >

Answers

Payback Period: Investmnet / Annual Cash flows Investment = 175000 Annual Cash flows = Net operating income + Depreciation An

.

Similar Solved Questions

1 answer
Question 13 2.5 pts An administrative agency has the power to investigate, to require persons to...
Question 13 2.5 pts An administrative agency has the power to investigate, to require persons to appear as witnesses, to require witnesses to produce relevant papers and records, and to bring proceedings against those who violate the law. True False Question 14 2.5 pts Agency investigations of possi...
1 answer
What defines the inner edge of a star’s habitable zone? What defines the outer edge of...
What defines the inner edge of a star’s habitable zone? What defines the outer edge of a star’s habitable zone?...
1 answer
How many joules are required to evaporate 1 gram of boiling water
how many joules are required to evaporate 1 gram of boiling water?...
1 answer
Options are: Non-exchange transactions Net assets with donor restrictions Collections Variance Power Board designated net assets...
Options are: Non-exchange transactions Net assets with donor restrictions Collections Variance Power Board designated net assets Endowment Promise to give For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate terms. 1. Unrestricted ne...
1 answer
Additional Information for All Question: Return on market is 10%, return on T-bills is 4%, and...
Additional Information for All Question: Return on market is 10%, return on T-bills is 4%, and companies pay 40% corporate tax and 30% capital gains tax. Aston Inc. is a company that has a cost of capital of 16%. It is considering either leasing or purchasing a new machine for a project that still h...
1 answer
The difference between a standard score of -1.0 and a standard score of 1.0 is a)...
The difference between a standard score of -1.0 and a standard score of 1.0 is a) the standard score 1.0 is farther from the mean than -1.0 b) the standard score -1.0 is farther from the mean than 1.0 c) the standard score 1.0 is above the mean while -1.0 is below the mean. d) the standard score -1....
1 answer
Dividend Policy Deserts Corp. will issue dividend. The dividend will be $0.5 per share, and there...
Dividend Policy Deserts Corp. will issue dividend. The dividend will be $0.5 per share, and there are 20,000 shares of stock outstanding. The firm has $10,000 excess cash, $900,000 fixed assets and 1,000,000 equity. a. What is Deserts’ ex-dividend price? b. Suppose that instead of paying a di...
1 answer
A 0.5 kg of saturated water vapor at 300°C is heated in a piston–cylinder device. Now...
A 0.5 kg of saturated water vapor at 300°C is heated in a piston–cylinder device. Now the steam expanded reversibly and isothermally to a final pressure of 600 kPa. 1. Determine the heat transferred during this process. 2. Determine the work done during the process. 3. Plot the PV diagram ...
1 answer
Describe the vector field by drawing some of its vectors. F(x, y) = 8x1 + 8yi...
Describe the vector field by drawing some of its vectors. F(x, y) = 8x1 + 8yi -10 10 10 Mostrar todo 21...
1 answer
Candy Canes Inc. spends $100,000 to buy sugar and peppermint in April. It produces its candy...
Candy Canes Inc. spends $100,000 to buy sugar and peppermint in April. It produces its candy and sells it to distributors in May for $150,000, but it does not receive payment until June. For each month, find the firm's sales, net income, and net cash flow, and fill in the following table. (Leave...
1 answer
6. The 'H NMR spectrum of a compound with molecular formular CaH10O is shown below. Determine...
6. The 'H NMR spectrum of a compound with molecular formular CaH10O is shown below. Determine the structure of the compound and assign the 'H NMR signals. 4 2...
1 answer
• Where not met in 200 iterations Listed below are paired data consisting of amounts spent...
• Where not met in 200 iterations Listed below are paired data consisting of amounts spent on advertising (in millions of dollars) and the profits (in millions of dollars). Determine if there is a significant positive linear correlation between advertising cost and profit. Use a significance le...
1 answer
Home / study / business / economics / economics questions and answers / 4. indicate what...
home / study / business / economics / economics questions and answers / 4. indicate what would happen to both m1 and m2 (increase, decrease, no change) due to each ... Question: 4. Indicate what would happen to both M1 and M2 (increase, decrease, no change) due to each of th... 4. Indicate what woul...
1 answer
Write a computer program that takes as input a floating point number x in the interval...
Write a computer program that takes as input a floating point number x in the interval [−π, π], and an integer n in the range 1, 2, ..., 10, and calculates sin(x) using the Taylor series definition within an accuracy of 10−n . Indicate your programming language of choice, and inclu...
1 answer
The City of Wolfe has issued its financial statements for Year 4 (assume that the city...
The City of Wolfe has issued its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is made up of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account...
1 answer
5. Under a high-pressure atmosphere of oxygen, the compound CHONS, is bumed. A. Write the balanced...
5. Under a high-pressure atmosphere of oxygen, the compound CHONS, is bumed. A. Write the balanced equation for this reaction. You may assume all the nitrogen is converted to NO, and the sulfur is converted to Sos. Coefficients should represent the smallest whole number ratio of all reactants and pr...
1 answer
Show that if n is a positive integer and a and b are integers relatively prime to 1 such that (On...
Show that if n is a positive integer and a and b are integers relatively prime to 1 such that (On(a), On(b))1, then Show that if n is a positive integer and a and b are integers relatively prime to 1 such that (On(a), On(b))1, then...