A company is trying to decide whether to go ahead with an investment opportunity that costs $90,000.
Question:
A company is trying to decide whether to go ahead with an investment opportunity that costs $90,000. The expected incremental cash inflows are $50,000, while the expected incremental cash outflows are $32,000. What is the payback period?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
Amount to be in...View the full answer
Answered By
Khurram shahzad
I am an experienced tutor and have more than 7 years’ experience in the field of tutoring. My areas of expertise are Technology, statistics tasks I also tutor in Social Sciences, Humanities, Marketing, Project Management, Geology, Earth Sciences, Life Sciences, Computer Sciences, Physics, Psychology, Law Engineering, Media Studies, IR and many others.
I have been writing blogs, Tech news article, and listicles for American and UK based websites.
4.90+
5+ Reviews
17+ Question Solved
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Question Posted:
Students also viewed these Managerial Accounting questions
-
In January 2012, Herdt Company is trying to decide whether to buy one, both, or neither of the following investments. Herdt Companys cost of capital is 16 percent and its tax rate is 30 percent....
-
The manager of MusicKing Company is trying to decide whether to move his store to the new Market Shopping Mall or to keep it in its present location. Because of changing economic conditions, the...
-
A company is trying to decide whether to make a 400,000 investment in a new product area. The project will last 10 years and the 400,000 of machinery will have a zero scrap value. Other best estimate...
-
The following are some examples of typical business transactions: 1. Purchased office equipment on credit. 2. The owner contributed capital. 3. Purchased office furniture for cash. 4. Received...
-
At approximately what temperature would a specimen of g-iron have to be carburized for 2 h to produce the same diffusion result as at 900C for 15 h?
-
What carbonyl compounds give the following alcohols on reduction with LiAlH4? Show allpossibilities. (a) CH- (b) CHCH3 (d) (CH)2HCH20 (c)
-
IQ Scores The mean IQ score for subjects taking the Wechsler Adult Intelligence Scale IQ test is 100. Determine whether the given value is a statistic or a parameter.
-
The dataset corresponding to the exercise on the DVD holds various measures of the 50 United States. The Murder rate is per 100,000, HS Graduation rate is in %, Income is per capita income in...
-
4. [25 points] In this problem you will design an adsorption system to remove compound A from water with granular activated carbon (GAC). The system consists of two batch reactors that contain the...
-
Using the data from E-S-12, calculate the amount of discount amortization (using the straight-line amortization method) on July 1, 2018, and record the related journal entry. What is the total...
-
Chaps & Saddles, a retailer of tack and Western apparel, earns an average contribution margin of 30 percent on its sales volume. Recently, the advertising manager of a local country radio station...
-
Mason Company purchased items of inventory as follows. Dec. 2 50 units @ $20 Dec. 12 12 units @ $21 Mason sold 15 units on December 20. Determine the cost of goods sold for the month under the LIFO...
-
Obtain equations for the speed of sound and isothermal, isobaric, and isentropic compressibility a valid for the van der Waals equation of state.
-
Maryann has just renewed her mortgage at 6.5% for bi-weekly payments. What is the appropriate periodic interest rate for each payment?
-
Suppose an investor in with a 35% tax rate is considering buying a municipal bond with a yield of 3.38%. What is the taxable equivalent yield on the municipal bond? (If your answer is 5.25%, enter...
-
1 You will create JavaScript code - embedded on an HTML file - according to the requirements listed on the next pages. 2 Upload and submit a single html file (.html extension) containing the code...
-
Find the truth table that describes the following circuit: YO 20 D D D OF
-
Alina deposited $33,000 with a bank in a five-year certificate of deposit kneeling 5% interest compounded daily. Find the interest earned on the investment. Use the table below with a compound...
-
A focal chord of a conic section is a line through a focus joining two points of the curve. The latus rectum is the focal chord perpendicular to the major axis of the conic. Prove the following...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
Your friend is starting a new company. He wants to write a business plan to clarify the companys business outlook and raise venture capital. Knowing that you have taken this course, he has asked you,...
-
A friend of yours is trying to value the equity of a company and, knowing that you have read this book, has asked for your help. So far she has tried to use the FCFE approach. She estimated the cash...
-
Forever Youth Technology is a biochemical company that is two years old. Its main product, an antioxidant drink that is supposed to energize the consumer and delay aging, is still under development....
-
Explain the three principles underlying modern labour law?
-
For job applicants, what are the limitations of labour law protections against discriminatory hiring decisions?
-
Why are nurses and doctors important to Canadian labour law?
Study smarter with the SolutionInn App