An investment of $1,000 produces a net cash inflow of $600 in the first year and $2,000

Question:

An investment of $1,000 produces a net cash inflow of $600 in the first year and $2,000 in the second year. What is the payback period?
a. 1.67 years
b. 0.50 year
c. 2.00 years
d. 1.20 years
e. Cannot be determined

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

See More Books

Question Posted: Aug 23, 2022 10:21 AM

See More Questions

A collective company saved 250000 lira in the first year from PR projects. What would be the values of F, P and A if this savings will continue for 5 years, the increase rate of savings is 25% and...
What is the payback period of each project? Year Project A Project B -S100 -S100 50 40 40 50 40 50 4 40
In the first year of operations, Naivete Company experienced a $ 500,000 net loss even though it sold 250,000 units. Management was very concerned about this outcome, so it hired an efficiency expert...
You invested $1000 in Sinoland Bank stock when Sinoland/US Dollar exchange rate was 10:1, and you received exactly 200 local shares of the stock. The stock price rises 23% in local currency terms,...
Which of the four approaches to risk management should be considered before deciding to do business internationally?
A cylindrical wire has a length of 2.80 m and a radius of 1.03 mm. It carries a current of 1.35 A, when a voltage of 0.0320 V is applied across the ends of the wire. From what material in Table 20.1...
In 16 experiments studying the electrical behavior of single cells, 12 use micro-electrodes made of metal and the other 4 use micro-electrodes made from glass tubing. If 2 of the experiments are to...
Kendall Jackson, CPA, is examining the operating effectiveness of the internal control of Town Mo, a large conglomerate in the music industry. As part of the evaluation, Jackson determined a...
HomeWeb is a new real estate advertising company in Melbourne, Australia. The company has around 30 staff taking care of their main company website where real estate agents pay to post their...
Thinking back to high school or first year chemistry, you may recall how to calculate mole fractions. For example, if you have 1 kmol of two liquid species (A and B), in total you have 2 kmol, and...
An investment of $1,000 produces a net annual cash inflow of $500 for each of five years. What is the payback period? a. Two years b. One-half year c. Unacceptable d. Three years e. Cannot be...
The payback period suffers from which of the following deficiencies? a. It is a rough measure of the uncertainty of future cash flows. b. It helps control the risk of obsolescence. c. It ignores the...
What are the two types of simple random sample selection methods? Which of the two methods is used most often by auditors, and why?
Price differences in similar products in different countries often exist. What can explain those differences?
What are the five characteristics of effective communication in marketing research? Why is each of these characteristics important for disseminating key insights throughout an organization?
Assume that 1 U.S. dollar can be exchanged for 105 Japanese yen or for 0.80 euro. What is the euro/yen exchange rate?
Are all of the steps in the marketing research process always followed in order? Why or why not? Give an example of a situation in which a step might be skipped in the marketing research project.
A television set sells for 3,000 U.S. dollars. In the spot market, $1 = 106 Japanese yen. If purchasing power parity holds, what should be the price (in yen) of the same television set in Japan?
Find i(t) for t > 0 for the circuit in Fig. 16.37. Assume is = 4u(t) + 2Î´ (t)mA. (Hint: Can we use superposition to help solve this problem?) 2 0.2
How do individual companies respond to economic forces throughout the globe? One way to explore this is to see how well rates of return for stock of individual companies can be explained by stock...
Traxonia Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of...
E. F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended...
A condensed income statement for the Commercial Division of Maxell Manufacturing Inc. for the year ended December 31, 2014, is as follows: Sales ..............$ 3,500,000 Cost of goods sold ............
1/GroRight Inc. is building a new warehouse facility at a cost of $12.4 million. The CEO of the firm is quite conservative and will only go ahead with this project once the company has sufficient...
Royal Industries has for many years enjoyed moderate but stable growth in sales and earnings. In recent years, it has faced a stiff competition in its plastic product line and, consequently, its...
At the end of the day, PayME stock will be worth 100(80% probability) or 110 (20% probability). A market-maker believes that 90% of her incoming traders are uninformed, and equally likely to buy or...

An investment of $1,000 produces a net cash inflow of $600 in the first year and $2,000

Question:

Step by Step Answer:

The payback period is d 120 years The payback period is a measure of the time it takes for an inve...View the full answer

Cornerstones of Managerial Accounting

Students also viewed these Business questions