Find what is the investments payback period

Assignment Help Managerial Accounting
Reference no: EM132956761

The expected profits from a $52,000 investment are $8,000 in Year 1, $12,000 in each of Years 2 to 5, and $6,000 in each of years 6 and 7.

Problem (a) What is the investments payback period?

Problem (b) If the firm's required payback period is four years, will it make the investment?

Reference no: EM132956761

Questions Cloud

Explain why and how central banks : Explain why and how central banks would diminish foreign currency reserves and The central bank explains in detail how speculation stabilizes the situation
Evaluate intangible factors : How can linear programming and non-linear programming be used to evaluate intangible factors, such as employee morale, customer satisfaction, and communication
Make a contribution format income statement for may : High Country, Incorporated, produces and sells many recreational products. Prepare a contribution format income statement for May.
How are unrealized gains and losses treated : How are unrealized gains and losses treated differently for available-for-sale securities than for trading securities - Provide the journal entries to record
Find what is the investments payback period : The expected profits from a $52,000, If the firm's required payback period is four years, will it make the investment? What is the investments payback period?
What is dollar profit or loss per share : a. If you bought GM at $20.00 and sold it at $40.00, what is your dollar profit or loss per share (ignoring transaction costs)?
Which project should be chosen if the required return : Which project be chosen if the required return on investment is 15% compounded annually? A company is considering two mutually exclusive investment project.
Deep value stocks in the time period : The results of the Fama and French study revealed that holding a portfolio of 200 of the highest (lowest) Book-to-market (Price-to-book) stocks over the period
What is the before tax yield of the muni : You have a choice between a municipal bond paying a 4 percent coupon and a corporate bond of the same risk rating paying a 5 percent coupon.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate the total cost including direct materials

Calculate The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B and predetermined overhead rate

  By how much is overhead under- or overapplied for the year

Actual costs for the year turned out to be $1,323,400. By how much is overhead under- or overapplied for the year

  Describe avoidable costs

Describe avoidable costs. What amount of the part WB23's production costs is avoidable? Should Quiet Truck outsource part WB23? Why or why not?

  What will the cooperative energy acquire for consolidation

On the off chance that Beta Ltd. gets premium on consolidation $15 lakh, what will be the cooperative energy acquire for consolidation

  What is the labor efficiency variance for march

What is the labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable)

  What undiscounted cash inflows vs cash outflow

Determine What is the difference between the total undiscounted cash inflows and cash outflows over the entire life of the machine?

  How many units must be produced during november

The company plan to sell 1,100 unit of product during November and plans to have 400 units on hand November 30. How many units must be produced during November?

  How many pesos will the franc buy

Using cross-rates, based on the spot rate, how many francs will the euro buy, how many pesos will the franc buy, and how many euro will the peso buy?

  What is the best way to communicate ideas

Compare the difference in profitability between your original forecast for the fiscal year 2012-2013 and the improved forecast using your suggested program

  Calculate the number of tickets north travel must sell

Calculate the number of tickets North Travel must sell each month to break even and make a target operating income of $17,000 per month

  Cost of goods manufactured during the period

Calculate the Cost of Goods Manufactured during the period and calculate the Cost of Goods Sold during the period.

  Find how many units in work in process at end of august

During August the Elkhardt Company completed 87,500 cans of paint. How many units were in Work in Process at the end of August?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd