Rico Petricelli Industries invests $960,000 in plant assets with an estimated 10-year service life and no salvage value. These assets contribute $64,000 to annual net income when depreciation is computed on a straight-line basis. Compute the payback period and explain your computation.

Answers

Answer 1

The payback period for this Rico Petricelli Industries' investment is 6 years.

Data and Calculations:

Cost of investment in plant assets =$960,000

Estimated useful life = 10 years

Estimated salvage value = $0

Annual depreciation = $96,000 ($960,000/10)

Annual net income = $64,000

Annual cash net inflow = $160,000 ($64,000 + $96,000)

Payback period = 6 years ($960,000/$160,000)

Thus, to compute the payback period as 6 years, add the annual depreciation to the annual net income to obtain the annual cash net inflow.  Then divide the cash outlay ($960,000) by the product above.

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Related Questions

How does the opportunity cost principle explain the relationship between the real interest rate and investment spending?
As the interest rate rises,
the more spending businesses want to do.
the less attractive it is to leave money in the bank instead of spending on investments.
the more attractive it is to leave money in the bank instead of spending on investments.
it has no effect on investment spending. If firms need to expand, they will invest regardless of the interest rate.
b. The investment line is
because of the relationship between real interest rates and investment
spending
perfectly elastic
vertical
upward-sloping
downward-sloping

Answers

The opportunity cost illustrates the relationship that exists between them because as the interest rate rises, the more attractive it is to leave money in the bank instead of spending on investments.

The investment line is downward sloping because of the relationship between real interest rates and investment spending.

Opportunity cost simply means what one foregoes in order to get something else. It should be noted that when there's an increase in the interest rate, this will lead, the cost of borrowing will be high. Therefore, there'll be a reduction in investment.

Therefore, there's a negative relationship between interest rate and investment spending. This then leads to a downward-sloping curve.

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what advice is given by tom peters in the article customer first? analyse and summarize.​

Answers

Answer:

which article?

Explanation:

$14,000 is invested in an account that earns 3% interest per year. When does the balance reach $19,379.27

Answers

Answer: 12 and a half month

Explanation:

Because 14,000 on a 3 percent interest per year; 3 percent of 14000 is 420 so think about it, when it goes to 19,379.27 it will take about 12 years along with the interests so about 12 and a half month.

Bramble University sells 3,500 season basketball tickets at $80 each for its 10-game home schedule. Bramble considers revenue to be earned proportionately as each game is played, regardless of how many ticket-holders attend the game. For the journal entries below, use the following account abbreviations: REV

Answers

If Bramble earned proportionately as each game is played, the appropriate journal entry are:

Based on the information given if the university sells 3,500 season basketball tickets at $80 each game, the appropriate journal entry to record the transaction is:

Bramble University journal entry

Debit Cash $280,000

Credit Unearned ticket revenue $280,000

(3,500 x $80 =$280,000)

(To record sales of ticket)

Debit Unearned ticket revenue $28,000

Credit Ticket revenue $28,000

(3,500 x $80)/10=$28,000)

(To record revenue recognized)

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The increased demand for hair and skin care products with Argan oil illustrates how new product ideas can come from unexpected sources.

Answers

It is true that the increased demand for the products made with Argan oil shows how new product ideas can come from unexpected sources.

Basically, the Argan oil is derived from the kernels of argan tree.

Different brainstorm of new idea of product by beauty and skin care lead to the invention of use of the Kernel for extraction of the Argan OIl.

It is very fortunate that the organic product seems likable by consumers, thus, leading to increased demand for product made from the Argan OIl.

Therefore, in conclusion, it true that the increased demand for the products made with Argan oil shows how new product ideas can come from unexpected sources.

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At the beginning of 2020, Gothic Architecture has issued1,200 shares of 6%, $50 par value cumulative preferred stock. All remaining shares are common stock. Gothic Architecture did not pay dividends in 2020 or 2021. Gothic plans to pay total dividends of $12,000 in 2022. How much of the $12,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders

Answers

The Preferred Stockholders of Gothic Architecture will be paid $10,800 ($3,600 x 3), while the Common Stockholders get $1,200.

Data and Calculations:

1,200 shares, 6% Cumulative Preferred Stock at $50 par value = $60,000

Dividends in 2020 = $0

Dividends in 2021 = $0

Dividends in 2022 = $12,000

Preferred dividends = $10,800 ($60,000 x 6%) x 3)

Common stock dividends = $1,200 ($12,000 - $10,800)

Thus, the Preferred Stockholders will be paid arrears of $7,200 ($3,600 x 2) and $3,600 for the current year, while the Common Stockholders will only get $1,200 ($12,000 - $10,800).

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PLEASE I NEED HELP!
Correct answers only and no links please:)

Explain the term 'Social enterprise'. State the differences between the objectives of Social enterprises and Business enterprises

Answers

Answer:

Social entrepreneurs seek innovative ways and operate to drive change, whereas social enterprises form to fulfill a business purpose and solve societal needs through their commercial activities.

One reason why the coffeehouse market is competitive is that A. it is trendy and therefore is likely to have a customer following. B. demand for coffee is very high. C. barriers to entry are low. D. consumption takes place in public.

Answers

The likely reason why the coffee house market is described as competitive is because: C. barriers to entry are low.

Characteristics of competitive market?

A competitive market is a market structure having the following characteristics:

There are many producers and consumer.A single producer nor consumer cannot dictate the market.Goods and services do not vary between producers (Homogenous products).Free entry and exit (no entry barrier).

Thus, coffee house is an example of competitive market.

there are many coffee houses and many buyers of coffee. Coffee produced can be said to be homogenous. More so, there is no stiff standards preventing people from venturing into coffee business.

Therefore, the likely reason why the coffee house market is described as competitive is because: C. barriers to entry are low.

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Psychographic segmentation of Starbucks

Answers

Answer:

One of the main marketing strategies a company like Starbucks employs is psychographic segmentation. Psychographic segmentation consists of dividing consumers from a market into groups based on social class, ... 34). This kind of strategy allows for appropriate allocation of resources proper adjustment of marketing mix

Explanation:

PA BRAINLIEST

TB MC Qu. 24-110 Alfarsi Industries uses the net present value... Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,800 and will produce cash flows as follows: End of Year Investment A B 1 $ 8,800 $ 0 2 8,800 0 3 8,800 26,400 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: _________
a) $(15,800).
b) $(20,093).
c) $10,600.
d) $4,292.
e) $17,358

Answers

Answer:

5x+1

Explanation:

A(n) ________ is a coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded. innovation system organizational development human resource inventory organizational behavior

Answers

Based on business analysis, an innovation system is a coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions.

Innovative systems generally synthesize ideas into a business concept and product designs and select which projects get funded.

Innovation system usually involves significant components such as the following:

Information, TechnologyPeople, Enterprises, Institutions

Innovation system. Generally used to facilitate and assist innovation to the success stage.

Hence, in this case, it is concluded that the correct answer is "innovation systems."

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Company cost of capital Quark Productions ("Give your loved one a quark today.") uses its company cost of capital to evaluate all projects. Will it underestimate or overestimate the value of high-risk projects?

Answers

Quark Productions is more likely to overestimate the value of high-risk projects using its company's cost of capital unless it is using the weighted cost of capital.

The company's cost of capital should change to reflect the high-risk nature of each project. Again, the estimation of high-risk projects does not work with a single figure (cost of capital). Quark Production should evaluate high-risk projects separately, using reflective costs of capital.

Thus, if Quark Productions uses a single company's cost of capital to evaluate all projects, there will be an overestimation of the values of the high-risk projects.

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At the end of the first pay period of the year, Sofia earned $6,000 of salary. Withholdings from Sofia’s salary include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $540 of federal income taxes, $200 of medical insurance deductions, and $50 of life insurance deductions. Compute Sofia’s net pay for this first pay period. (Round your intermediate and final answers to 2 decimal places.)

Answers

A withholding tax is the amount remitted on the employees behalf by the employer.

When the salary or payroll is computed then that amount is deducted from the earned salary which gives the net salary.

Sofia’s net pay $ 4751

Sofia earned salary of $6,000

Less

FICA Social Security taxes =6.2% ×$6,000= $372

FICA Medicare taxes= 1.45% ×$6,000 =  $87 ,

Federal income taxes, $540

Medical insurance deductions  $200,

Life insurance deductions  $50

Total Deductions: $1075

Sofia’s net pay $ 4751

The FICA , Social Security ,Federal or other taxes are deducted by the government which benefit the citizen in older age or any other difficult circumstances.

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Suppose that you are evaluating the option of increasing the advertising exposure by using an alternative medium. If you invest $2 million towards this, % exposed will increase from 75% to 80%. Your total market comprises of 5 million customers. Assuming that everything else would remain unaltered after this change and that each customer buys one unit only. What will be the effect of the change on unit sales?
A. 41,202 more units sold.
B. 14,715 less units sold.
C. 14,715 more units sold.
D. 41,202 less units sold.
E. 220,725 units.

Answers

The answer to this question will be C
B. 14,715 less units sold. Hope this helps

A(n) _____ is an arrangement where workers who don't join a union must make payments equal to union dues and fees to get union representation services.

Answers

Workers who don't join a union must make payments equal to union dues and fees to get union representation services in an agency shop

A(n) agency shop is an arrangement where workers who don't join a union must make payments equal to union dues and fees to get union representation services.

Agency is a business relationship in which a principal gives a legal right to an agent to act on his behalf. The agent acts on behalf of the principal when dealing with a third party.

Therefore, workers who don't join union in an agency shop must pay equal union dues and fees.

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Homework help

The acronym used for the process of setting goals is..

O ACHIEVE
O OUTCOME
O GOAL
O SMART

Answers

Answer:

SMART

Explanation:

hope this helps and is right!! p.s. i really need brainliest :)

Use your knowledge of what drives employee performance to complete the sentence.

1. Ann’s speech segment represents _________________.
a. feedback
b. a channel
c. a message

2. Nanci’s thought represents __________________.
a. feedback
b. decoding
c. encoding

3. In this conversation, verbal speech is the ___________________.
a. resonator
b. channel
c. noise

Answers

Answer: 1. C, 2. B, 3. C

Your client, Leo Getz, was elected to the bench on the Supreme Court of Washington last year. As such, he is required to attend court in Olympia at a minimum of two days a week but usually spends four days each week at this location. Justice Getz resides in Spokane and has lived there for the last 30 years. He is registered to vote in Spokane, has a home and lives with his wife and three children there. In addition to being a state Supreme Court Justice, Mr. Getz is a professor at the Gonzaga School of Law and will continue teaching one class per semester. He plans on maintaining his residence in Spokane and to continue renting an apartment in Olympia for when he is required to be there. Justice Getzâs schedule is as follows:

He spends Sunday evening through Thursday in Olympia where he attends to his Supreme Court duties. He drives back to Spokane Thursday afternoon and teaches his class on Friday afternoon. For the remainder of Friday, Saturday and Sunday, he spends his time grading papers, preparing for his next class and also spends additional time with regard to his judicial duties reading briefs and records and clerk memos, writing opinions, etc. At the Washington Supreme Court, Justice Getz has an office, staff, and access to the State law library. Nonetheless, he completes much of his judicial work at the law school library in Spokane during the weekends.

Justice Getz earns $175,000 per year as a member of the Supreme Court and an additional $30,000 from Gonzaga for teaching his classes.

Justice Getz is reimbursed for much of his travel expenses to and from Olympia. In addition, he pays rent for his Olympia apartment and is wondering what the tax consequences of this situation are and whether he can take a deduction on Schedule A for his unreimbursed expenses and whether there are any tax consequences to his reimbursement for travel expenses.

Your client, Justice Getz, is late in filing his taxes so he provided the above information as it pertains to his 2017! tax return â prior to the Tax Cuts and Jobs Act that was effective in 2018⦠Ignore any potential limitations on employee business expenses that were effective starting in 2018. Determine where his "Tax Home" is located.

Answers

According to the IRS rules, Justice Leo Getz's tax home is Washington and not Spokane nor Olympia, where he maintains living homes.

The IRS tax home rule defines a tax home as the taxpayer's principal place of business, employment, or post of duty. This rule does not consider where the taxpayer maintains a family home. Without a regular or main place of business, or living place, the taxpayer is an itinerant worker and has a tax home as where they work.

Thus, Justice Getz's tax home is neither Spokane nor Olympia but Washington.

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While cultural differences should always be considered, which industry should be especially aware of traditions when trying to enter a foreign market

Answers

Countries of the world have different cultures. The food industry should be aware of traditions when trying to enter a foreign market.

A food industry entering a foreign market must take note of the traditions, customs and food that is consumed in that place.

There are different factor to consider when entering a foreign market. The

factors are;

Gross Domestic ProductUnemployment Rate  Inflation

The influence of culture on international marketing is very great. A marketer have to take a good study about the local culture thoroughly before offering a product to them.

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When you are saving money you are: A:gathering B:cutting back C:discounting D:accumulating​

Answers

Answer:

accumulating?

Explanation:

Is L. Gore a mechanistic or an organic organization? Support your answer with examples from the case?

Answers

organic organization , uses an extremely organic organizational structure. ... In a simple, stable environment, therefore, companies benefit from the efficiencies created by a mechanistic organizational structure.

Both individual and organizational goals are in sync with an organic organizational structure. L. Gore is an organic organization.

What is the distinction between organic and mechanistic thinking?

Both individual and organizational goals are in sync with an organic organizational structure. Each employee in a mechanistic organizational system is assigned to only one task. Employees can be assigned to diverse tasks in an organic organizational structure.

W. L. Gore employs approximately 10,000 people and generates over $3 billion in yearly revenue, although the company has an unusually organic organizational structure, as previously mentioned.  Employees have no supervisors, work in teams, and frequently develop jobs for themselves to address functional roles in the organization.

Therefore, the above explanation aptly describes the statement.

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what is most likely true of a formulaic story

Answers

Answer:

It closely follows Freytag's pyramid

Explanation:

If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price, they would be using which approach to pricing

Answers

Answer:

ethnocentric.

Explanation:

Passed this test already.

Using your understanding of how conflict occurs, complete the sentence.

The two managers often engaged in ______________________; in today’s meeting, they had a spirited debate over the project’s optimal workflow, and their disagreement ultimately led to a creative solution.

a. relationship conflict
b. groupthink
c. task conflict

Answers

Answer:

c. task conflict

Explanation:

The two managers often engaged in task conflict; in today’s meeting, they had a spirited debate over the project’s optimal workflow, and their disagreement ultimately led to a creative solution.

Which of the following best describes the adjustment to​ long-run equilibrium if an​ economy's short-run equilibrium output is below potential​ output? A. Since unemployment is less than its natural​ rate, there will be excessive tightness in the labor market​ and, consequently, pressure on firms to raise their prices at a more rapid rate. This acceleration of inflation shifts the​ short-run aggregate supply curve up​, pushing the​ economy's output down toward its potential output. B. Since unemployment is less than its natural​ rate, there will be excess slack in the labor market​ and, consequently, pressure on firms to raise their prices at a less rapid rate. This deceleration of inflation shifts the​ short-run aggregate supply curve up​, pushing the​ economy's output up toward potential output. C. Since unemployment is greater than its natural​ rate, there will be excess slack in the labor market​ and, consequently, pressure on firms to raise their prices at a less rapid rate. This deceleration of inflation shifts the​ short-run aggregate supply curve down​, pushing the​ economy's output up toward potential output. D. Since unemployment is greater than its natural​ rate, there will be excess slack in the labor market​ and, consequently, pressure on firms to raise their prices at a less rapid rate. This deceleration of inflation shifts the​ short-run aggregate supply curve down​, pushing the​ economy's potential output down toward its​ short-run output.

Answers

In a situation where the short-run equilibrium output is below potential​ output in an economy, the adjustment will be B. Since unemployment is less than its natural​ rate, there will be excess slack in the labor market​ and, consequently, pressure on firms to raise their prices at a less rapid rate. This deceleration of inflation shifts the​ short-run aggregate supply curve up​, pushing the​ economy's output up toward potential output.

In the long run equilibrium, the aggregate supply and aggregate demand are equal.

In a situation where unemployment is less than its natural​ rate, this will lead to excess slack in the labor market​ and pressure will be on firms to raise their prices at a less rapid rate.

This deceleration of inflation will then brings about the short-run aggregate supply curve up​ and this ultimately, pushes the​ economy's output up toward potential output.

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Hudson Company reports the following contribution margin income statement.


HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (10,000 units at $300 each) $ 3,000,000
Variable costs (10,000 units at $240 each) 2,400,000
Contribution margin 600,000
Fixed costs 420,000
Income $ 180,000
1. Compute break-even point in units.
2. Compute break-even point in sales dollars.

Answers

Hudson Company's break-even point in units and sales dollars = 7,000 units and $2,100,000, respectively.

Data and Calculations:

HUDSON COMPANY

Contribution Margin Income Statement

For Year Ended December 31                          Total          Per Unit

Sales (10,000 units at $300 each) =          $ 3,000,000     $300 (as given)

Variable costs (10,000 units at $240 each) 2,400,000     $240 ($2.4 m /10,000)

Contribution margin                                         600,000       $60 ($300 - $240)

Fixed costs                                                       420,000

Income                                                           $ 180,000

Contribution margin ratio = 20% ($60/$300 x 100)

1. Break-even point in units = Fixed costs/Contribution margin per unit

= $420,000/$60

= 7,000 units

2. Break-even point in sales dollars = Fixed costs/Contribution margin ratio

= $420,000/20%

= $2,100,000

Thus, the break-even point in units and sales dollars = 7,000 units and $2,100,000, respectively.

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Most retirees spend roughly half of their budget
on
A.living expenses
B. New hobbies
C.travel
D.children and grandchildren

Answers

Answer:

A.Living expenses.

Explanation:

wag mag mura kung mali

Answer:

a

Explanation:

living expenses

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared

Answers

The amount of cash dividends to be paid if a $2 per share dividend is declared is $80,000

Total number of shares issued

= 45,000

Shares reacquired

= 5,000

Total number of outstanding shares

= 45,000 - 5,000

= 40,000

Then,

Cash dividends to be paid

= Total number of outstanding shares * Share dividend declared

= 40,000 * $2

= $80,000

Therefore, the amount of cash dividends to be paid if a $2 per share dividend is declared is $80,000

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On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $9,600,000. Marjlee had the following debt obligations which were outstanding during all of 2021:

Construction loan, 9% $2,400,000
Long-term note, 8% 3,200,000
Long-term note, 5% 6,400,000

Required:
Calculate the amount of interest capitalized in 2021 for the building using the specific interest method.

Answers

The amount of interest capitalized in 2021 for the building using the specific interest method is $360000.

The first thing to do is to calculate the average cost of borrowing which will be:

= ($3200000 × 8%) + ($6400000 × 5%) / $9,600,000

= ($256000 + $320000) / $9600000

= $576000 / $9600000

= 0.06 = 6%

The average expenditure during the year will be:

= $9600000/2.

= $4800000

The capitalized Interest will be:

= 9% × $2400000

= $216000.

Then, the capitalized Interest for the borrowing will be:

= 6% × $2400000

= $144000

The total capitalized Interest will be:

= $216000 + $144000

= $360,000

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As opposed to running for office, careers in
government administration are what kind of
positions?
A. permanent
B. freelance
C. contract

Answers

Answer:

I think its freelance .

Answer:

The answer would be B. freelance

Explanation:

I got it right on my test; Edmentum

Other Questions
How did geography affect peoples choices of where to settle in ancient Egypt and Kush? no links pls Dale Clifford, an American history teacher, wants her students to understand the causes of the Civil War. She leads a discussion of the war, and in the process explains that the North had the advantage of manufacturing, so they could produce more weapons, and the South had the advantages of initially having better leaders and better equipment. She also explains that Lincoln was our president during the War, and he issued the Emancipation Proclamation, which freed the slaves in the south. She then outlines some of the major battles of the war, such as Gettysburg. Finally, she has the students write an essay about what they believe it might have felt like to be a slave.Which of the following is the best assessment of the alignment of Dale's lesson?Question 21 options:Her lesson was out of alignment, because slavery was the primary cause of the War, and her discussion didn't include slavery.Her discussion was in alignment because slavery was the primary cause of the War and she had her students write an essay about what it might have felt like to be a slave.Her lesson was in alignment, because her objective was for her students to understand the causes of the War, and all of her discussion was about the War.Her lesson is out of alignment, because neither her discussion nor her essay focused on the causes of the War. Which statement best explains how public policies play a role in preventing chronic diseases?They can identify those carrying the disease to warn others in the community.They can provide funding, resources, and education to the community.They can require health care providers to treat members of the community who are infected.They can make it a crime to knowingly expose someone else to a chronic disease. What happens when you put diesel in a gas engine. Two ends of a steel wire of length 8m and 2mm radius are fixed to two rigid supports. Calculate the increase in tension when the temperature falls by 10C. Given linear expansivity of steels = 12x10^_6 per kelvin and Young's modules for steel =2x10^11 n/m^2 A staff gauge measures the height of the water level in a river compared to the average water level. At one gauge the river is 1 ft below its average water level of 10 ft. It begins to rise by a constant rate of 1.5 ft per hour. Will the river reach a level of 7 ft above normal after 5 hours? Explain. Line A is represented by the following equation: x + y = 2What is most likely the equation for line B so the set of equations has no solution? Suppose you are looking to purchase a new TV. You are placing it in an opening that is 136 cm wide but want to leave at least 2 cm of room on either side of the TV. If the TV screen measures 86 cm high, which is the correct equation to use to find the largest size TV that will fit? TVs are measured based on the diagonal measure. How do weak intermolecular bond strengths affect the melting and boiling point of a substance?The melting point is lower, but the boiling point is higher.Both the melting point and boiling point are lower.The melting point is higher, but the boiling point is lower.Both the melting point and boiling point are higher. define active transport in your own words 9. Find the lowest common denominator for the following pairs of fractions.a. 2/6 and b. and 3/8 c. 1/8 and d. and 3/16 The first factor has a degree of 2 . The second factor has a degree of 3 . The third factor has a degree of . The product has a degree of . A band earns $\frac{2}{3}$ of their profit from selling concert tickets and $\frac{1}{5}$ of their profit from selling merchandise. The band earns $1500 from selling concert tickets. How much money does the band earn from selling merchandise? alt hair cut names to cut it? its abt to me noise Simplify the expression. Choose the best response to the following question.Quines son los padres de tus padres?mis primosmis suegrosmis abuelosO mis tos What question should you ask yourself when selecting credible evidence?Select all that apply:Who is the author?Is there a lot of data to pull from this source?How recent is the source?What is the author's purpose?What type of sources does your audience value?Where did I find this information?Does this evidence align with my argument?/i only got partial right There are 60 students eating lunch in the cafeteria five-tenths of them brought lunches from home. How many students brought lunches from home? Jill rode her bike for 2/3 hours for 18mph and she walked 2/5 hours with a speed of 5mph. By how much more distance did she ride on the bike, then walked. What is one of the major roles the Supreme Court plays in the federaljudiciary?