Beyer Company is considering buying an asset for $300,000. It is expected to produce the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Beyer Company is considering buying an asset for $300,000. It is expected to produce the following net cash flows. Net cash flows Year Year 1 $72,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows Compute the payback period for this Investment. Note: Cumulative net cash outflows must be entered with a minus sign. Round your Payback Perlod answer to 2 decimal places. Year 2 $42,000 $ (300,000) $ 72,000 42,000 71,000 230,000 19,000 Payback period= Cumulative Cash Flows Year 3. $71,000 Year 4. $230,000 (300,000) Year 5 $19,000 Beyer Company is considering buying an asset for $300,000. It is expected to produce the following net cash flows. Net cash flows Year Year 1 $72,000 Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows Compute the payback period for this Investment. Note: Cumulative net cash outflows must be entered with a minus sign. Round your Payback Perlod answer to 2 decimal places. Year 2 $42,000 $ (300,000) $ 72,000 42,000 71,000 230,000 19,000 Payback period= Cumulative Cash Flows Year 3. $71,000 Year 4. $230,000 (300,000) Year 5 $19,000
Expert Answer:
Answer rating: 100% (QA)
To calculate the payback period we need to determine the amount of time it takes for the net cash in... View the full answer
Related Book For
College Algebra
ISBN: 978-0134697024
12th edition
Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels
Posted Date:
Students also viewed these finance questions
-
A trader from AAA bank tries to make money and notices that Credit Suisse is offering 1.0079 Swiss franc for each US dollar, another banks is quoting 0.4978 euros for each Swiss franc and LocalBank...
-
Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback...
-
Analiza can paint a room in 3 hours. Leoben can do it for 2 hours. Walter can do the painting job in 5 hours. If all them worked together, how long will it take them to paint the room?
-
A balanced three-phase source serves the following loads: Load 1: 18 kVA at 0.8 pf lagging Load 2: 10 kVA at 0.7 pf leading Load 3: 12 kW at unity pf Load 4: 16 kVA at 0.6 pf lagging The magnitude of...
-
Identify and explain the fallacies of relevance or defective induction, or presumption, or ambiguity as they occur in the following passages. Explain why, in the case of some, it may be plausibly...
-
What usually happens to the total biomass in an ecosystem during succession? Does the number of species present in an ecosystem usually change as succession continues?
-
Martin contributes cash of $24,000, and Steven contributes office equipment that cost $20,000 but is valued at $16,000 to the formation of a new partnership. Prepare the journal entry to form the...
-
what ways do biases, both conscious and unconscious, influence ethical decision-making, and what strategies can be employed to mitigate their effects and promote fairness and equity?
-
Miguel purchased crypto currency on the same day he used all of it to pay for some new clothes online for $500 from an online retailer that offered a large discount for payments made in crypto...
-
Sunny wants to buy Gurjit's home in Victoria. Four years ago, Gurjit financed the $1,500,000 property with a cash down payment of $300,000 and private financing. The remaining portion of the purchase...
-
On January 1, 2018, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 15 years and had a salvage value of $7,000. On January 1, 2024, ABC Company decided...
-
Calculate the annual uncontrolled SO2 emissions from a 1000 MW power plant that burns coal (12000 BTU/lb; 1.5 wt. % sulfur; 15 wt. % ash) at 33% efficiency. Determine the efficiency of the sulfur...
-
A charged particle (q = -8.0 mC), which moves in a region where the only force acting on the particle is an electric force, is released from rest at point A. At point B the kinetic energy of the...
-
What is the difference between a yeast and a mold growth form? Provide an example of a beneficial fungus and one that is associated with human disease. What does it mean that fungi are "opportunists"?
-
Convert the following numerical arithmetic expression into reverse Polish notation and show the stack operations for evaluating the numerical result. (3 + 4)[10(2 + 6) + 8]
-
If your school has a subscription to the FASB Codification, go to aaahq.org/ ascLogin.cfm to log in and prepare responses to the following. (a) What is the stock dividend? (b) What is a stock split?...
-
Determine the different possibilities for the numbers of positive, negative, and nonreal complex zeros of each function. (x) = 11x 5 - x 3 + 7x - 5
-
For each relation, (a) find the domain and range, and (b) if the relation defines y as a function of x, rewrite the relation using function notation and find (-2). (x + 2) 2 + y 2 = 25
-
Find a rational function f having the graph shown. 3. -3 t. -3
-
The pendulum on a grandfather clock has a period of 2.00 s. If the clock is not wound, the pendulums amplitude begins to decay at a rate of 0.53% each pendulum period. a. What is the time constant of...
-
A block with a mass of 0.28 kg is attached to a horizontal spring. The block is pulled back from its equilibrium position until the spring exerts a force of 1.0 N on the block. When the block is...
-
The motion of a nightingales wingtips can be modeled as simple harmonic motion. In one study, the tips of a birds wings were found to move up and down with an amplitude of 8.8 cm and a period of 0.82...
Study smarter with the SolutionInn App