## Answers

**Step-1, Calculation of the annual cash flow**

The annual cash flow = Annual net operating income + Depreciation expenses

= $28,800 + $44,170

= $72,970 per year

**Step-2, The Payback period of the Project**

The Payback period of the Project = Initial Investment Cost / Annual cash flow

= $336,990 / $72,970 per year

= 4.62 Years

**“Hence, the Payback period of the Project will be 4.62 Years”**

#### Similar Solved Questions

2 answers

##### At a certain college, there were 400 science majors, 100 engineering majors, and 600 business majors

At a certain college, there were 400 science majors, 100 engineering majors, and 600 business majors. If one student was selected at random, the probbility that they are an engineering major is...

1 answer

##### Ssion 1 Imagine that you have been hired to create an advertising strategy for the release...

ssion 1 Imagine that you have been hired to create an advertising strategy for the release of a new line of basketball shoes produced by the athletic apparel maker Under Armour. The Maryland-based business has seen rapid growth in recent years, but it is not considered to be the same kind of globall...

1 answer

##### If the interest rate is 10%, what is the present value of a security that pays...

If the interest rate is 10%, what is the present value of a security that pays you $1,100 next year, sl 220 the year after, and S1338 the year after that? Present value is S(Round your response to the nearest penny)...

1 answer

##### A company in its first year whose method of accounting is a cash basis (cash basis)...

A company in its first year whose method of accounting is a cash basis (cash basis) had expenses of $ 3,000 for professional services. According to the IRS, what is the amortization?...

1 answer

##### Corporation has issued $2 million of long-term bonds paying 8% interest and S8 million of common...

corporation has issued $2 million of long-term bonds paying 8% interest and S8 million of common stock. If the after-tax income $2.500.000, the capital employed $10 million, and the cost of capital is 12.16%, the EVA is: a. $1,248,000 c. $1,284,000 b. ($1.284,000) d. $1,121,600 13. For the following...

1 answer

##### For 4,5 and 6, which are the correct answers Question 4 What is the correct term...

for 4,5 and 6, which are the correct answers Question 4 What is the correct term for this relationship? Contractor Constructs Building Customer Binary Complex Unary Question 5 10 pts What would this relationship be considered? Computer Windows Macintosh The symbol combination used is not valid in an...

1 answer

##### Using java fix the code I implemented so that it passes the JUnit Tests. MATRIX3 public...

Using java fix the code I implemented so that it passes the JUnit Tests. MATRIX3 public class Matrix3 { private double[][] matrix; /** * Creates a 3x3 matrix from an 2D array * @param v array containing 3 components of the desired vector */ public Matrix3(double[][] array) { this.matrix = array; } /...

1 answer

##### Lita Lopez start Help Save & Exit Submit Check my work Lita Lopez started Biz Consulting,...

Lita Lopez start Help Save & Exit Submit Check my work Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company. b. The company ...

1 answer

##### Suppose your firm is considering investing in a project with the cash flows shown below, that...

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Time: C...

1 answer

##### How much more money is required to fund an ordinary perpetuity than a 35-year ordinary annuity,...

How much more money is required to fund an ordinary perpetuity than a 35-year ordinary annuity, if the funds can earn 6% compounded quarterly, and both pay $800 monthly? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ more money is needed to fund the perpe...

1 answer

##### Question 6, E6-21A (similar to) Question Help Parish Drycleaners has capacity to clean up to 6000gments...

Question 6, E6-21A (similar to) Question Help Parish Drycleaners has capacity to clean up to 6000gments per month Click the con lo view the cour schedule Assume that Parishcharges customers 513 per garment for dry cleaning Prepare Part's projected income statement i 4 300ments are cleaned in Mar...

1 answer

##### At January 1, 2020, Betty DeRose, Inc. reported work in process totaling $18,670. This balance was...

At January 1, 2020, Betty DeRose, Inc. reported work in process totaling $18,670. This balance was made up of three jobs having the following costs: Job #171 Job #236 Job #412 total cost at Jan. 1, 2020 ..... $4,390 $6,370 $7,910 Duri...

5 answers

##### Medical care is so special that normal economic forces do not apply and normal economic tools are not always used, explain the above statement

Medical care is so special that normal economic forces do not apply and normal economic tools are not always used, explain the above statement....

1 answer

##### If the colored bands on a resistor are Brown, Orange, Blue and Gold. What is the...

If the colored bands on a resistor are Brown, Orange, Blue and Gold. What is the value its resistance?...

1 answer

##### Required information [The following information applies to the questions displayed below.) Lina purchased a new car...

Required information [The following information applies to the questions displayed below.) Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation de...

1 answer

##### Help find those answers please 10) In a certain A-connected balanced load, the line voltages are...

help find those answers please 10) In a certain A-connected balanced load, the line voltages are 230 V and the impedances are 60 35 2. Determine the magnitude of the phase currents A) 1.63 A B) 2.78 A C) 3.83 A D) 4.15 A 11) In a certain Δ-connected balanced load, with line voltages of 230 V a...

1 answer

##### The Lennard-Jones potential energy Ulj(x) is important in chemical bonding theory and is given by 1012...

The Lennard-Jones potential energy Ulj(x) is important in chemical bonding theory and is given by 1012 ool ULJ 1 1 1 ULJ = 4€ | (x12 26 I 0 E 012 where e and o are constants and ř=r/o. (a) Sketch a graph of this potential energy. (b) Use IDL to obtain a careful graph of ULJ(x)/€ versu...

1 answer

##### What is the slope of the line passing through the following points: # (0, 3) ,(-3,2)#?

What is the slope of the line passing through the following points: # (0, 3) ,(-3,2)#?...