Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback

Answers

Answer 1

Answer: 2.5 years

Explanation:

The payback period of a project as the term implies, is the amount of time it takes for a project's cashflows to pay off its original outlay.

The formula is;

= Year before payback + Amount remaining/ Cashflow in year of Payback

Year 1 + 2 = 150 + 200 = $350

Amount remaining = 500 - 350 = $150

Payback period = 2 + 150/300

= 2.5 years

Susmel Inc. Is Considering A Project That Has The Following Cash Flow Data. What Is The Project's Payback

Related Questions

Kingbird, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $290000 and credit sales are $2910000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Kingbird, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $2900 before adjustment?

Answers

Answer:

Dr Bad Debts Expense 8,700

Cr Allowance for Doubtful Accounts 8,700

Explanation:

Preparation of the adjusting Journal entry that Kingbird, Inc. will make if the Allowance for Doubtful Accounts has a credit balance of $2900 before adjustment

Based on the information given the Allowance for Doubtful Accounts will have an ending credit balance of 4% of the amount of $290,000 or the amount of $11,600 (4%*$290,000) which means that for us to increase the credit balance of the amount of $2,900 to the amount of $11,600, the account will requires a credit of the amount of $8,700($11,600-$2,900).

Therefore the adjusting Journal entry that Kingbird, Inc. will make if the Allowance for Doubtful Accounts has a credit balance of

the amount of $2,900 before adjustment will be:

Dr Bad Debts Expense 8,700

Cr Allowance for Doubtful Accounts 8,700

[4%*$290,000 -($2,900)]

A company purchases inventory on account for $45,000 with terms 2/10, n/30. Under the net method of accounting for purchases, the purchase would be recorded at:_______

a. $36,000.
b. $40,500.
c. $45,000.
d. $44,100.

Answers

Answer:d. $44,100.

Explanation:

The net method is a way a company or firm records its customer's invoice. Under the net method of Accounting for purchases,  The record of purchases are recorded considering  the cash discount.

Therefore

Purchase price = $45000

Cash Discount  at terms  2/10 n/30

$45000  x  2% =  $45,000 x 0.02 =$900

Net purchase price = $45000 - $900 = $44,100.

The journal to record the inventory purchased on account using the  net method  will be

Accounts  Titles                             Debit             Credit

Inventory                                 $44,100.  

Accounts payable                                              $44,100.

Your storage firm has been offered 100,000 in one year to store some goods for one year. Assume your costs are $95,000, payable immediately, are the cost of capital is 8%. Should you take the contract?

Answers

Answer:

We should not take the contract

Explanation:

Net present value = Initial investment + Present value of cash inflows

Net present value = -95000 + 100000/1.08

Net present value = -2407.41

Thus, the contract should not be taken because the NPV is negative

Olivia requested for leave from her supervisor for one week since her daughter fell sick and required home care. The employer refused to grant her leave and as a result Olivia was forced to be absent from work without pay. She later filed a suit against her employer alleging violation of Title VII. Under the assumption that Olivia is a productive employee, the court most likely held that:____________

Answers

Answer:

b. Olivia is entitled for leave under F M L A.

Explanation:

From the question, we are informed about Olivia who requested for leave from her supervisor for one week since her daughter fell sick and required home care. The employer refused to grant her leave and as a result Olivia was forced to be absent from work without pay. She later filed a suit against her employer alleging violation of Title VII. In this case, Under the assumption that Olivia is a productive employee, the court most likely held that Olivia is entitled for leave under F M L A. Title VII can be regarded as a law that applies to private as well as public employers with 15 employees and more, the enforcement is carried out by

the Equal Employment Opportunity Commission in the state.It gives prohibition on sexual sex harassment or hostile work environment by the employers to the employees, the law can also be enforced in a case whereby an employee is facing a situation where by the employer refused to promote the employees

.

Urgent Corporation had earnings per share of $4 last year, and it paid a $2 dividend.

Total retained earnings increased by $12 million during the year, and book value per

share at year-end were $40. Urgent Corporation has no preferred stock, and no new

common stock was issued during the year. If Argent’s year-end debt (which equals its

total liabilities) was $120 million, what was the company’s year-end debt/assets ratio?​

Answers

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During 2017, Sunland Company reported cash provided by operations of $762000, cash used in investing of $659000, and cash used in financing of $182000. In addition, cash spent for fixed assets during the period was $265000. Average current liabilities were $624000 and average total liabilities were $1647000. No dividends were paid. Based on this information, what was Sunland free cash flow?

Answers

Answer:

the free cash flow is $497,000

Explanation:

The computation of the free cash flow is shown below:

Free cash flow is

= cash flow from operating activities - capital expenditure

= $762,000 - $265,000

= $497,000

Hence, the free cash flow is $497,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

A major element in budgetary control is A. the preparation of long-term plans. B. the comparison of actual results with planned objectives. C. the valuation of inventories. D. approval of the budget by the stockholders.

Answers

Answer:

b. the comparison of actual results with planned

Explanation:

Budgetary control can be regarded as a way whereby budgets are been set up because if the future period then make comparison with the actual performance so that variances could be found if any. To find variance as well as corrective measures, , there should be a comparison of budgeted figures with respect to actual figures by management. It should be noted that major element in budgetary control is the comparison of actual results with planned

The rule in Garner v. Murray deals with​

Answers

Answer:

In the event of the insolvency of a partner any losses should be shared in the ratio of the last agreed capital balances before the dissolution took place. This is known as the Garner v Murray rule.

Explanation:

Buyers in the business market give little importance to overall value for purchase decisions. True or false?

Answers

Answer:

False

Explanation:

Buyers are generally divided into two markets:

consumer market (B2C)business market (B2B)

B2B sales are very different than everyday B2C sales since institutional buyers (businesses) tend to analyze their purchases a lot and only carry them out if they are necessary. The people that make these B2B purchases are professional buyers, i.e. they are people whose work is to make the best possible deals when buying. The goal of these professional buyers is to maximize value received per dollar paid.

Briefly explain why the covariance of a security with the rest of a well-diversified portfolio is a more appropriate measure of the risk of the security than the security’s variance.

Answers

Answer:

Covariance is a statistical measure that is use for determining the relationship between two variables and its measure the strength of correlation between the twos. A well diversified portfolio is type of portfolio on which all stocks are negatively correlated to each other. The risk of their portfolio is minimal with given level of return. So, in well diversified portfolio, covariance between stock is minimal, that is stock is not much correlated with each other.

a community hospital in pennsylvania has a 15% supply expense ratio. If total operating expenses are $1 million this month, what is the total annual cost of supplies

Answers

Answer:

$150,000

Explanation:

The question says that the total operating expenses of the hospital is 1 million, while also saying that it has a supply expense ratio of 15%. An expense ratio can be by dividing a fund's total operating expenses it's average dollar value of its assets under it's management. This is what gave us the 15% we got in the question. Now, to get the total supply cost in dollars (not percentage), all we is multiply the percentage by the total cost we were given. Thus,

Total annual cost of supply =

15% * 1,000,000 =

15/100 * 1,000,000 =

$150,000.

Therefore, the total annual cost of supply is $150,000

Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%. What is Magee's required return

Answers

Answer:

10.50%

Explanation:

Calculation for Magee's required return

Using this formula

Required return=Risk-free rate+Beta(Market risk premium)

Let plug in the formula

Required return= 4.50% + 1.20(5.00%) .

Required return=4.50%+6%

Required return= 10.50%

Therefore Magee's required return will beb10.50%

Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their adjusted gross income for 2019 is $415,300. What is Russ and Linda's total child and other dependent credit for 2019?

a. $500
b. 2,500
c. 3,700
d. 4,500
e. 4,700

Answers

The correct answer is:

c. $3,700

Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 4%

Answers

Answer:

the real rate of return is 2.88%

Explanation:

The computation of the real rate of return is shown below:

As we know that

Real rate of return is

= {(1 + nominal rate of return) ÷ (1 - inflation rate)} - 1

= {(1 + 0.07) ÷ (1 + 0.04)} - 1

= 2.88%

Hence, the real rate of return is 2.88%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Elena's aunt gave her $100 for her birthday with the condition that Elena buys herself something. In deciding how to spend the money, Elena narrows her options down to four choices:

Option A, Option B, Option C, and Option D. Each option costs $100. Finally, she decides on Option B. The opportunity cost of this decision is:________

a. the value to Barb of Options A, C and D combined.
b. the value to Barb of the option she would have chosen had Option B not been available.
c. the average of the values to Barb of Options A, C, and D.
d. $100.

Answers

Answer: b. the value to Barb of the option she would have chosen had Option B not been available.

Explanation:

The opportunity cost of an alternative is the benefit/ value of the next best alternative that would have been picked if the current alternative had not been available.

In this case Elena chose B. The opportunity cost of this decision therefore is the value of the option she would have picked had B not been available because this would be the next best alternative.

What is the difference between statistics and business statistics?​

Answers

Answer:

Statistics is extended part of mathematics were you deal about only formulas numbers and business statistics deals about your knowledge about financial business marketing.

Statistics is extended part of mathematics were u deal about only formulas numbers and business statistics deals about knowledge about financial business marketing reasearch you should more knowledge about current affairs of business such as financially.

The market rate of return is 12 percent and the risk-free rate of return is 3 percent. Lexant stock has 3 percent less systematic risk than the market and has an actual return of 12 percent. This stock:______

a. Is underpriced.
b. Is correctly priced.
c. Will plot below the security market line.
d. Will plot to the right of the overall market on a security market line graph.
e. Will plot on the security market line.

Answers

Answer:

a

Explanation:

The market rate of return is 12 percent and the risk-free rate of return is 3 percent. Lexant stock has 3 percent less systematic risk than the market and has an actual return of 12 percent. This stock is underpriced

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:_______.A. Complements and the higher price for oil increased the demand for natural gas. B. Complements and the higher price for oil decreased the supply of natural gas. C. Substitutes and the higher price for oil increased the demand for natural gas. D. Substitutes and the higher price for oil decreased the supply of natural gas. E. Unrelated and the prices of both products increased because of increased reliance on fossil fuels.

Answers

Answer:

C. Substitutes and the higher price for oil increased the demand for natural gas.

Explanation:

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are substitutes and the higher price for oil increased the demand for natural gas.

Substitute goods are goods that can be used in place of another good because they serve the same purposes.

The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

The S&P 500 stock index is at 1300. The annualized interest rate is 4.0 percent, and the annualized dividend is 2 percent. You are currently considering purchasing a two-month futures contract for your portfolio Refer to Exhibit 15.12. Calculate the current price of the futures contract.

Answers

Answer: $1,304.30

Explanation:

Current price can be calculated by the formula:

= 1,300 * ( 1 + (4% - 2%)) ^ 2/12 months

= 1,300 * 1.0033058903246372019414946658385

= $1,304.29

= $1,304.30

The unemployment rate is the percentage of the: Group of answer choices population that is unemployed. adult population that is unemployed. adult population that is in the labor force. labor force that is unemployed. labor force that is employed. g

Answers

Answer:

labor force that is unemployed.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.

The unemployment rate is divided into various types, these include;

1. Cyclical unemployment rate (CU).

2. Frictional unemployment rate (FU),

3. Structural unemployment rate (SU).

4. Actual unemployment rate (AU).

5. Natural Rate of Unemployment (NU).

Hence, the unemployment rate is the percentage of the labor force that is unemployed.

Answer: the answer is true

Explanation: i just did it on edgnuity

A personal characteristic that fosters organizational politics is a) the desire to help. b) need for power. c) drive to be a vision-holder. d) requirement for participation. e) tendency to need to socialize

Answers

Answer: b) need for power.

Explanation:

Organizational politics are activities that people engage in to be able to further their personal interests even if these interests are not always in the best interest of the company itself.

To be able to further their interests, they need power and influence which means that the personal characteristic that fosters organizational politics is the need to have power.

Machine X has an initial cost of $10,000. It is expected to last 12 years, to cost $200 per year to maintain and to have a salvage value of $1,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 8% interest is most nearly ___________.A. 51,547.B. $1,000.C. 51.475.D. 51,160.E. $1,750.

Answers

Answer:

C. $1.475

Explanation:

Initial cost of Machine X = $10,000

Annual maintenance cost = $200

Salvage value = $1,000

Interest rate = 8%

Useful life = 12 years

Calculation of the equivalent uniform annual cost

EUAC = Initial cost of the machine X (A/P, i, n) + Annual maintenance cost - salvage value(A/F, i, n)

EUAC = 10,000(A/P, 8%, 12) + 200 - 1,000(A/F, 8%, 12)

EUAC = [10,000 * 0.1327] + 200 - [1,000 * 0.0527]

EUAC = 1,327 + 200 - 52.7

EUAC = 1,474.30

The scaffer auto company has purchased a large parcel of land for $1 million. The company recently discovered that the land is contaminated and is worthless top all possible buyers. the opportinity cost of the land is:_________

Answers

Answer:

the opportunity cost of the land is zero

Explanation:

The opportunity cost is the cost that provides the best option in the many alternatives available

Here in the question it is given that a parcel fo land is purchased for $1 million  and it is seen that the land is worthless so here the opportunity cost of the land is zero as it is of no use

Therefore the opportunity cost of the land is zero

A buyer borrows money at 6% interest to pay a $10100 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer’s net savings for these two transactions?

Answers

Answer:

$67

Explanation:

Calculation for the buyer's net savings for the two transaction

Buyer's net savings=($10,100 × .01) − ($10,100 × .06 × 20 days/360)

Buyer's net savings=$101-$34

Buyer's net savings=$67

Note that 10th day of the discount period less 30th day of the invoice will gives 20 days while 360 days represent the number of days in a year

Therefore the buyer's net savings for the two transaction will be $67

________ products have a product life cycle that reflects benefits that are readily understood by consumers,and because the products are easily imitated by competitors,the appropriate marketing strategy is to broaden distribution quickly.

Answers

Answer:

Low-learning products

Explanation:

Low learning products are those that are easily accepted and understood by the general public, i.e. they do not require consumer education. These types of products are generally convenience goods, e.g. potato chips, detergent, etc.

On the other hand, high learning products required that consumers receive a prior education process before the general public begins to purchase them, e.g. Blu-rays in the 2000s.

Walton Inc., makes an unassembled product that it currently sells for $55. Production costs are $20. Walton isconsidering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12.What decision should Walton make?

a. process further because NI will be $13 greater
b. sell before assembly because NI per unit will be $12 greater
c. process further because NI will be $1 greater
d. sell before assembly because NI per unit will be $1 greater

Answers

Answer:

c. process further because NI will be $1 greater

Explanation:

Calculation to know What decision that Walton should make

First step is to calculate the current selling price profit

Using this formula

Current selling price profit= selling price -cost price

Let plug in the formula

Current selling price profit= =$55-$20

Current selling price profit = $35

Second Step is to calculate the new selling price profit

New selling price profit= $68-($20+_12)

New selling price profit=$68-$32

New selling price profit= $36

Last step is to calculate the NI using this formula

NI=New selling price profit-Current selling price profit

Let plug in the formula

NI=$36-$35

NI=$1

Based on the above calculation their is an increase in net income of the amount of $1 which means that the decision that Walton should make will be to process further because NI will be $1 greater

If Revere Company expects to sell 1,250 units of its product at $12 per unit, and break-even sales for the product are $13,200, what is the margin of safety ratio?

Answers

Answer:

Margin of safety ratio= 0.12

Explanation:

Giving the following information:

Sales= 1,250 units

Break-even point in sales= $13,200

Selling price= $12

First, we need to determine the current sales in dollars:

Sales in dollars= 1,250*12= $15,000

Now, the margin of safety ratio:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= (15,000 - 13,200) / 15,000

Margin of safety ratio= 0.12

Harrison Co. issued 14-year bonds one year ago at a coupon rate of 6.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a $1,000 par value?

Answers

Answer:

Bond Price​= $1,128.82

Explanation:

Giving the following information:

Time= 13*2= 26

Cupon= (0.069/2)*1,000= 34.5

YTM= 0.055/2= 0.0275

Par value= $1,000

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 34.5*{[1 - (1.0275^-26)] / 0.0275} + [1,000/(1.0275^26)]

Bond Price​= 634.88 + 493.94

Bond Price​= $1,128.82

Diazlo Corporation has 10,000 shares of 7​%, $10 par cumulative preferred stock and 47,000 shares of common stock outstanding. Diazlo declared no dividends in 2017 and had no dividends in arrears prior to 2017. In 2018​, Diazlo declares a total dividend of $45,000. How much of the dividends go to the common​ stockholders?A. $44,000 B. $41,000 C. $47,000 D. None of above

Answers

Answer: None of above

Explanation:

Firstly, we calculate the annual dividend on the preferred stock which will be:

= 10,000 × 7% × $10

= 10,000 × 0.07 × 10

= $7000

Dividend paid to shareholders will be:

= $7000 × 2 = $14000

The dividend that goes to the common​ stockholders will now be:

= $47000 - $14000

= $33000

Therefore, the answer is none of the above

A company factored $37,000 of its accounts receivable and was charged a 3% factoring fee. The journal entry to record this transaction would include a:_____.A. Debit to Cash of $37,620, a debit to Factoring Fee Expense of $380, and a credit to Accounts Receivable of $38,000.
B. Debit to Cash of $38,380 and a credit to Accounts Receivable of $38,380.
C. Debit to Cash of $38,000 and a credit to Accounts Receivable of $38,000.
D. Debit to Cash of $38,000 and a credit to Notes Payable of $38,000.
E. Debit to Cash of $38,000, a credit to Factoring Fee Expense of $380, and a credit to Accounts Receivable of $37,620.

Answers

the answer is c lolllll
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