A firm is considering a project that requires an immediate investment of $400. The project will then produce two inflows of $100 followed by two more cash flows: one of $1,095 and one of $160. What is the discounted payback period of this project, given that the firm's WACC is 15%?
Answers
The discounted payback period of the project is approximately 3.42 years.
This means that it will take a little over three and a half years for the project to generate enough cash inflows to recoup the initial investment adjusted for the time value of money. The calculation accounts for the firm's cost of capital, which is 15%.
To arrive at this result, we need to first calculate the present value of each cash flow using the formula PV=C/(1+r)^t, where C is the expected cash flow, r is the discount rate (15%), and t is the number of years from the present. The present values of the four cash flows are $86.96, $75.63, $711.83, and $91.95, respectively. We then add up the present values until we reach a cumulative total that exceeds the initial investment of $400.
In this case, the discounted payback period occurs between the second and third cash flows, since the cumulative present value at that point is $874.42, which is greater than the initial investment. To calculate the precise payback period, we need to interpolate between the second and third year, using the formula:
Discounted payback period = year before payback + (unrecovered investment at start of year / cash flow during year)
In this case, the year before payback is 2, the unrecovered investment at the start of year 3 is $325.79, and the cash flow during year 3 is $711.83.
Discounted payback period = 2 + ($325.79 / $711.83) = 3.42 years
Therefore, the firm can expect to recoup its initial investment in about three and a half years, adjusted for the time value of money and the cost of capital. While this metric does not take into account cash flows beyond the payback period, it provides a quick way to assess the risk and liquidity of a project.
To learn more about payback period click brainly.com/question/23149718
#SPJ11
Related Questions
Which of the following best describes the job market in social media?
Answers
Social media is a computer-based technology that is facilitated by the creation and sharing of ideas.
Job market of social media is gaining popularity and is increasing at a very fast rate. As social media is a valuable tool in today's world. Employers use social media networking tools to find jobs and candidates. A good online presence is good for the job markets.Hence the option A is correct that is the no. of jobs in social media has tripled in the past years.
Learn more about the best shows in the job markets on social media.
brainly.com/question/10076618.
Click this link to view O*NET’s Skills section for Secondary School Special Education Teachers. Note that common skills are listed toward the top, and less common skills are listed toward the bottom. According to O*NET, what are common skills needed by Secondary School Special Education Teachers? Check all that apply. instructing installation learning strategies repairing active listening technology design
Answers
Answer:
instructing
learning strategies
active listening
Explanation:
Answer:
Explanation:
instructing
learning strategies
active listening
Suppose the elasticity of demand for cereal is 1. If cereal increases in price by 25 percent, how much will the quantity demanded decrease by?.
Answers
Quantity demanded after price increase = Quantity demanded before price increase * (1 - percent change in quantity demanded)
= 100 * (1 - 25%) = 100 * 0.75 = 75
How much will the quantity demanded decrease by?.The elasticity of demand measures the responsiveness of quantity demanded to a change in price. A value of 1 for the elasticity of demand means that a 1 percent increase in price will lead to a 1 percent decrease in the quantity demanded.So, if cereal increases in price by 25 percent, we can expect the quantity demanded to decrease by 25 percent, because:Percent change in quantity demanded = elasticity of demand * percent change in price= 1 * 25% = 25%This means that if the quantity demanded for cereal was 100 units before the price increase, after the price increase, we can expect the quantity demanded to decrease to 75 units:Quantity demanded after price increase = Quantity demanded before price increase * (1 - percent change in quantity demanded)= 100 * (1 - 25%) = 100 * 0.75 = 75To learn more about quantity refer:
brainly.com/question/26044328
#SPJ4
You select 5 cards from a standard deck. What is the probability that you will have at least 2 aces? None 0.07 O 0.056 0.04
Answers
The probability of having at least 2 aces when selecting 5 cards from a standard deck is 0.07.
To calculate the probability, we need to determine the number of favorable outcomes (having at least 2 aces) and divide it by the total number of possible outcomes when selecting 5 cards from a deck of 52 cards. The number of favorable outcomes can be calculated by considering the different combinations of aces that can be selected: either 2 aces, 3 aces, 4 aces, or all 5 aces. For 2 aces: Choose 2 aces from the 4 available and 3 non-aces from the remaining 48 cards: C(4,2) * C(48,3) For 3 aces: Choose 3 aces from the 4 available and 2 non-aces from the remaining 48 cards: C(4,3) * C(48,2) For 4 aces: Choose 4 aces from the 4 available and 1 non-ace from the remaining 48 cards: C(4,4) * C(48,1) For 5 aces: Choose all 5 aces from the 4 available: C(4,5)The total number of possible outcomes is the number of ways to select 5 cards from a deck of 52 cards: C(52,5). Finally, we add up the favorable outcomes and divide by the total number of outcomes:
Learn more about probability here;
https://brainly.com/question/32958843
#SPJ11
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
What is location analysis
Answers
Answer:
Location analysis is a technique for discovering, assessing and specifying the optimal placement of an organization's people, information, activities, and materials.Location models are key in performing location analysis by providing a well-documented common vision of current and desired location arrangements.
Explain briefly what kind of Consumer Service is particularly open to an entrepreneur.
Answers
Answer:
Almost any Consumer Services enterprise is amenable to the entrepreneur, from personal services like pet care and yard maintenance to a clinical psychology and counseling practice. Particularly fertile in our current business landscape are Consumer Services tied to computers, electronics, the Internet, and social media.
Explanation:
31) beta has three products, a, b, and c. the following information is available: product a product b product c sales $60,000 $90,000 $24,000 variable costs 36,000 48,000 15,000 contribution margin 24,000 42,000 9,000 fixed costs: avoidable 6,000 15,000 4,000 unavoidable 7,000 9,000 5,400 operating income $ 11,000 $18,000 $ (400) beta is thinking of dropping product c because it is reporting a loss. assuming it drops product c and does not replace it, what will be the effect on operating income? (please list dollar value and the direction of the change in operating income)
Answers
The operating income will increase by $400 if product C is dropped.
Operating income is the difference between total revenue and total expenses, both variable and fixed. In this scenario, product C is reporting a loss of $400, which means that its total expenses are greater than its total revenue. If Beta decides to drop product C and not replace it, they will save $15,000 in variable costs and $5,400 in unavoidable fixed costs associated with that product. However, there will still be $9,400 in avoidable fixed costs that will remain, since these costs are not associated exclusively with product C.
Therefore, the new operating income will be calculated as follows:
Product A: $11,000 (unchanged)
Product B: $18,000 (unchanged)
Total operating income: $29,000
This represents an increase of $400 from the original operating income of $28,600, since the savings from dropping product C exceed the loss of contribution margin associated with that product.
Learn more about Operating income here:
https://brainly.com/question/31591698
#SPJ11
Assume that United Technologies Corporation is evaluating a proposal to change the company’s manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 12,000 design hours per year; an operating cost savings of $65 per hour. The annual cash expenditures of operating the CAD system are estimated to be $600,000. The CAD system requires an initial investment of $200,000. The estimated life of this system is five years with no salvage value. The tax rate is 21%, and United Technologies uses straight-line depreciation for tax purposes. United Technologies has a cost of capital of 14%.
(a) Compute the annual after-tax cash flows related to the CAD project.
$Answer
(b) Compute each of the following for the project:
1. Payback period. Round your answer to 2 decimal places.
Answer years
2. Net present value. (Round answer to the nearest whole number.)
$Answer
Answers
The annual after-tax cash flows related to the CAD project is $8400.
Given,
After-tax annual cash flows = $142,200 + $8,400 = $150,600
Annual operating cash flow = (12,000×$65) - $600,000 = $180,000
Annual after tax operating cash flow = $180,000 × (1-.21) = $142,200
Depreciation tax shield = Depreciation ( tax rate).
Depreciation tax shield = ($\(\frac{200000}{5}\) × 21% = $8,400.
The annual after-tax cash flows related to the CAD project is $8400.
Outflows are represented by the money spent, while inflows are represented by the money received.
A business's flow of cash is continuous. For instance, when a retailer makes an buy, cash leaves the company and goes to the suppliers.
To learn more about cash flows, visit:
https://brainly.com/question/27994727
#SPJ4
Critically explain Robbins definition of economics?
Answers
Answer:
In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”
Explanation:
purchased grooming equipment for $12,700
Answers
Answer:
who spends that much-
Explanation:
okay good job on the server Andrew and it they said
Explain the difference between co-signing, a joint account, and an authorized user.
Answers
Answer:
Co-signing, a joint account, and an authorized user are all ways in which multiple people can be involved in managing a single account, but they have some key differences.
Co-signing refers to when two or more people are responsible for repaying a loan or debt. The co-signer is not the primary borrower, but they are responsible for the debt if the primary borrower fails to make payments. Co-signing is commonly used when the primary borrower has little credit history or a low credit score and needs someone with a better credit profile to co-sign in order to get the loan.
A joint account is a bank or credit account that is owned by two or more people. Each person has full access to the account and can make deposits or withdrawals, write checks, and make purchases. Joint accounts are commonly used by married couples or partners, but can also be used by business partners or family members.
An authorized user is someone who is added to a credit card account by the primary cardholder. The authorized user can use the card to make purchases, but they are not responsible for repaying the debt. The primary cardholder is responsible for all the charges on the card. Authorized users are commonly used to help a person who has no credit or poor credit to establish a credit history, or as a convenience for a parent or partner.
In a nutshell:
Co-signing: A Co-signer guarantees the debt but not a full access.
Joint account: Both have full access and are responsible for the debt
Authorized user: Has access to the account but only primary user is responsible for the debt.
When it comes to the management of finances or funds in an organization there are various solutions accessible, each with its own set of benefits and drawbacks based on which selection is made.
What is an authorized user?When is someone who has been granted authorization to use a credit card or bank account but is not liable for the debt or the funds in the account is called an authorized user.
A joint account is a bank account shared by two or more people. Each account holder has identical access to the account's funds and is accountable for its management.
A co-signer is someone who agrees to be liable for the loan if the primary borrower is unable to pay it back. Borrowers with a limited credit history or a history of loan defaults often choose this option.
Learn more about the joint account, here:
https://brainly.com/question/23507729
#SPJ2
his lesson starts on time (change into negative)
Answers
Answer:
His lesson started late
Explanation:
The AutoSum icon is located in
which of the following groups on the
Home tab? *
Answers
Answer:
The AutoSum option can be found in two areas: It is contained in the Editing group of the ribbon, as shown in the first example above. It can also be found under the Formulas tab.
Erik's job is to negotiate the best price for his client, a retaller that sells high-end shoes. He approaches a shoe manufacturer with whom the retailer wants to carry out business. He tells the manufacturers that his client is willing to purchase 10 pairs of shoes of every size if they lower their price by 10 percent. What kind of intermediary is Erik?
A. distributor
B. consumer
C. wholesaler
D. broker
Answers
Answer:
D. broker
Explanation:
A broker is a person or a firm who organizes or arranges for financial transactions between two parties or more. A broker is an intermediary because they connect a willing seller to a willing buyer for a commission. Brokers do not take ownership of the products being transacted. They only create a link between buyers and sellers.
Erick is a broker. He acts on behalf of the retailer and connects them to the manufacturer.
Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answers
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
To learn more about Stocks follow the link.
https://brainly.com/question/14649952
#SPJ2
What is true about expense ratios for fees charged to manage mutual fund accounts?
Answers
Answer:
A lower percentage ratio indicates more money has been invested to make money for the customer
Explanation:
A customer opens a long margin account with only 1 position, consisting of 100 shares of ABC stock valued at $20 per share. There is no debit balance in the account. If the customer buys 100 shares of XYZ at $60 per share, the margin call will be
Answers
Answer:
The margin call will be $6,000.
Explanation:
Since there is no debit balance in the customer's margin account, it implies that the customer is not owing the broker on margin. The additional purchase of the 100 shares of XYZ necessitates the margin call by the broker for the customer to fund his margin account by paying additional funds worth $6,000 to cover the purchase of XYZ shares by the broker on his behalf.
A margin account is an account maintained by a broker on behalf of his customer through which the customer is able to buy and sell securities using his own funds and the broker's. The implication is that the customer's equity in the account is equal to the market value of the securities minus the borrowed funds from the broker.
Have a look at the top 10 brands in the world, what similarities can you see in regards to their marketing activities
Answers
s you probably know, brand equity is becoming increasingly important factor to successful brands. Brand equity has the ability for firms to to gain additional market share, at a price premium, with increased customer loyalty, and greater acceptance of new products. It also provides significantly more access to more retailer channels and easier ability to enter new markets.
Professional valuation companies that rank firms on the brand equity value consider how much the brand contributes to additional profitability. Here are the top 10 brands for 2015 as determined by Millward Brown.
Apple
Microsoft
IBM
Visa
AT&T
Verizon
Coca-Cola
McDonalds
Marlboro
theo, an amazon seller, is adding a product to his inventory list in seller central. he knows his product is eligible to sell because he has seen that product on amazon in the past. is theo correct?
Answers
Theo may or may not be correct.
It is possible that Theo's product is eligible to sell on Amazon because he has seen it on the platform before. However, it is also possible that Amazon has changed its policies or product requirements, and the product may no longer be eligible to sell.
Additionally, there may be certain restrictions or requirements for certain categories of products, such as approval from Amazon or compliance with specific regulations.
Therefore, in order to confirm whether his product is eligible to sell, Theo should conduct thorough research on Amazon's policies and requirements, and ensure that his product meets all of the necessary criteria before adding it to his inventory list.
For more questions like Inventory click the link below:
https://brainly.com/question/28916857
#SPJ11
During May. Sen the World Cruises, Inc. collected $1000 cash from a customer for services to be provided during June Which of the following statements about this transaction is correct?
$1000 of revenue should be recorded in May
$500 of revenue should be recorded in May and $500 in June
$1,000 of revenue should be recorded in June
No revenue should be recorded for these events because they relate only to the balance sheet.
Answers
During May, Sen the World Cruises, Inc. collected $1000 cash from a customer for services to be provided during June. The statement about this transaction that is correct is that $1,000 of revenue should be recorded in June. Revenue is recorded as and when it is earned.
According to the revenue recognition principle, revenue is recognized when a company earns it. In this case, Sen the World Cruises, Inc. collected $1000 cash from a customer for services to be provided during June.
This means that the company has not yet earned the revenue from the customer, as the services are to be provided during June. Therefore, no revenue should be recorded in May because it does not yet meet the revenue recognition criteria of being earned.
The revenue can only be recognized in June when the services are provided to the customer. Therefore, $1,000 of revenue should be recorded in June. The accrual basis of accounting records transactions when they occur, regardless of whether cash has been received or not.
Thus, even though cash has been received in May, revenue recognition must be recorded in June, when the services are actually provided to the customer.
To know more about provided visit:
https://brainly.com/question/9944405
#SPJ11
Both employer and employee are responsible for paying a set percentage of the employee's earnings. What is the name of this payroll tax? Select one: a. Federal Insurance Contributions Act withholdings b. Family Medical Leave Act withholdings c. Employee Retirement Income Security Act withholdings d. Consolidated Omnibus Budget Reconciliation Act withholdings
Answers
The payroll tax that is responsible for the employer and employee paying a set percentage of the employee's earnings is known as "Federal Insurance Contributions Act withholdings". Option A is the answer.
The Federal Insurance Contributions Act (FICA) is a payroll tax levied on both workers and employers in the United States to fund Social Security and Medicare programs. The amount of FICA tax withheld from an employee's paycheck is determined by the employee's income and the current FICA tax rate.
The employer and employee each contribute half of the total FICA tax, which is a set percentage of the employee's gross earnings.The Federal Insurance Contributions Act withholdings option (a) is the correct answer to the given question.
You can learn more about payroll tax at
https://brainly.com/question/31378664
#SPJ11
According to the video, what are some tasks that Construction Managers perform? Select four options.
installing plumbing and electrical fixtures
purchasing land to build on
deciding on construction methods
hiring contractors
selling building materials to laborers
making schedules
getting permits and licenses
creating architectural plans
Answers
Tasks. To fulfill deadlines, arrange or manage the activities of a construction project. Prepare and send cost tracking reports, progress reports, or budget estimates. Thus option C, D, F, G is correct.
What are Construction Managers to perform?A representative of the owner or developer, such as administrative personnel, employees, or clients, shall interpret and explain the plans and the conditions of the contract.
Construction project planning, coordination, budgeting, and completion are all under the control of construction managers.
A construction manager performs the following duties at a high level: The entire building project is planned out with deadlines and checkpoints. Employs and oversees personnel and contractors.
Therefore, the planning or management of a construction project's activities to meet deadlines.
Learn more about construction Managers here:
https://brainly.com/question/21082516
#SPJ1
Which development would most reflect Karl Marx's belief in the economic
system that he predicted would replace free markets?
A. Companies begin selling more products overseas.
B. Governments eliminate taxes on corporate profits.
OC. Private businesses lose control over factories.
O D. Workers are forced to accept low wages for their labor.
Answers
The loss of factory control by private firms is the process that most closely reflects Karl Marx's belief about the economic system that will eventually replace free markets.
Option C will be the representation of the economic system that Karl Marx believed in.
Karl Marx economic theoryTo explain relative inequalities in market prices, Karl Marx believed in the labor theory of value. The value of a manufactured economic good can be determined objectively by the average direct labor hours required to make it, according to this theory.
Karl Marx on PrivatizationAccording to Marx, the entire goal of primitive accumulation is to monopolize the means of production so that exploiting owners can profit from the surplus labor of people who, due to a lack of other options, are forced to work for them.
Therefore, option C is the correct answer.
For more information about Karl Marx, refer below
https://brainly.com/question/867219
Answer: A is the correct answer
Explanation:
Match the examples of the impact of the innovation of technology to their relevant sectors.
manufacturing
communication
financial products
transportation
Answers
Answer:
1. Communication.
2. Transportation.
3. Manufacturing.
4. Financial products.
Explanation:
Technology can be defined as a branch of knowledge which typically involves the process of applying, creating and managing practical or scientific knowledge to solve problems and improve human life. Technologies are applied to many fields in the world such as medicine, information technology, cybersecurity, engineering, environmental services, manufacturing, farming, transportation, telecommunications, etc.
Basically, technology has impacted the world significantly and positively as it has helped to automate processes, increased efficiency and level of output with little or no human effort.
Some of the sectors that have been impacted greatly by technology includes;
1. Communication: electronic data transmission allows companies to re-order inventory immediately without human interaction. Through the use of interconnected network systems, companies can easily make order for products in real-time without human interaction.
2. Transportation: Delivery by drones allow companies to ship products without paying labor costs. Drones are automobile and usually do not need anyone to drive it like with other forms of transportation such as trains, ships, trucks, etc.
3. Manufacturing: New equipment allows a producer of windows to increase production by 25%. The introduction of a new equipment to a production line would significantly increase the level of output or productivity.
4. Financial products: Financial futures allow farmers to lock in prices of their crops. A financial future is a financial contract that obligates a buyer to buy a financial product or avails a seller an opportunity to sell his or her products at a specific price and future date.
A florist wants to open her own retail store, She researches the prices charged at three local competitor salons and estimates she can average $30 per flower
arrangement. Her goal is to have her new salon break even within one year of opening. For this analysis, the hair stylist must estimate fixed costs, variable costs,
and how many customers visits (units) will be needed to break even.
Given the following costs:
Flowers per sale = $3
Vase = $3
Annual rent = $36,000
Annual utilities = $3,600
Annual internet / telephone = $1,800
Annual wages= $80,000
Annual insurance = $6,000
Initial Equipment costs = $20,000
Match the correct figure to the appropriate location in the break-even formula.
Average Price = $30
GMetrix SMS7 v7.0.27
Fixed Costs = $147,400
int in unite 6142
0000
B
Answers
The florist requires 6,142 purchasing customers (units) to break even.
What is the break-even?The break-even is the sales units required for the total revenue to equal the total costs (fixed and variable) without a remainder, profits (positive), or losses (negative).
The formula for computing the break-even sales units is:
Break-even sales units = Fixed costs ÷ Contribution Margin per unit
Selling price per flower = $30
Variable cost per flower (Flower and Vase) = $6
Contribution margin per flower = $24 ($30 - $6)
Contribution margin ratio = 80% ($24 ÷ $30)
Fixed Costs:
Annual rent = $36,000
Annual utilities = $3,600
Annual internet / telephone = $1,800
Annual wages= $80,000
Annual insurance = $6,000
Initial Equipment costs = $20,000
Total fixed costs = $147,400
Break-even sales units = Fixed costs ÷ Contribution Margin per unit
= 6,142 flowers ($147,400 + $24)
Thus, the florist must sell 6,142 units to achieve the break-even point.
Learn more about the break-even point at https://brainly.com/question/15281855
#SPJ1
A taxable corporate issue yields 6.3 percent. For an investor in a 35 percent tax bracket, what is the equivalent aftertax yield? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)Aftertax yield %
Answers
The equivalent aftertax yield for an investor in a 35% tax bracket is 4.095%. This means that after paying taxes on their investment, the investor will earn a net yield of 4.095%.
To calculate the aftertax yield, we need to first determine the portion of the yield that will be subject to taxes. In this case, the investor is in a 35% tax bracket, so they will owe taxes on 35% of the yield.
To calculate the aftertax yield, we can use the following formula:
Aftertax yield = Yield x (1 - Tax rate)
where Yield is the taxable yield and Tax rate is the investor's tax rate as a decimal (in this case, 0.35).
Plugging in the numbers, we get:
Aftertax yield = 6.3% x (1 - 0.35) = 4.095%
It's important to note that taxes can have a significant impact on investment returns, so it's important for investors to consider the aftertax yield when making investment decisions. Additionally, investors in different tax brackets will have different aftertax yields, so it's important to calculate this on a case-by-case basis.
Learn more about Tax rate here:
https://brainly.com/question/30629449
#SPJ1
The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even
Answers
Answer:
The correct answer is "2000 units".
Explanation:
Given:
Fixed cost,
F = $50,000
Variable cost,
VC = $100 per unit
Price,
P = $125 per unit
Let the units to be sold be "x".
Throughout the case of breakeven,
⇒ \(Total \ revenue=Total \ cost\)
⇒ \(125x=50000+100x\)
On subtracting "100x" from both sides,
⇒ \(125x-100x=50000+100x-125x\)
⇒ \(25x=50000\)
⇒ \(x=\frac{50000}{25}\)
⇒ \(=2000 \ units\)
Using the accounting equation (A = L + OE) calculate the amount of equity the company has if your assets are worth $10,000 total, while your debt is $5,000.
Answers
Answer:
$5,000
Explanation:
The Equation (A = L + OE) is the accounting equation that guides in preparing a balance sheet. The equation in full is
Assets = Liabilities + Owners Equity.
In this case
Assets = $10,000 , liabilities = $5,000, equity = ?
$10,000 = $5000 + Equity
Equity = $10,000 - $5,000
Equity = $5,000
Scenario 3: Buying a cell phone plan It’s time to buy a new cell phone plan, and you will be paying for this one yourself. The providers offer a lot of options, and your budget is limited. What financial information do you need? What financial decision-making strategies can you use? (Cost comparison, cost-benefit analysis, calculating future expenses, or budgeting?)
Answers
Answer:
hi bestie
cost comparison
Explanation: