What the payback period for the uneven cash flows is

Assignment Help Managerial Accounting
Reference no: EM132607681

Harrison Company is considering an investment in a new automated production system. The new system requires an initial investment of $7,000,000 and generates either of the following cash flows:

  1. Even cash flows of $1,400,000 per year
  2. The following expected annual cash flows from Year 1 through Year 5: $1,100,000, $1,680,000, 3,280,000, $1,880,000, and $600,000

Required:

Complete the following: If required, round your answers to one decimal place.

Question A. The payback period for the even cash flows is_____ years.

Question B. The payback period for the uneven cash flows is____ years.

Reference no: EM132607681

Questions Cloud

What the losses associated with the grape wastage should be : As a result a lot of good grapes are wasted. For the purpose of product costing, the losses associated with this grape wastage should be treated as
What is the effect of the change on cost of goods sold : In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. What is the effect of the change on 2018 cost of goods sold
Accounting and reporting for firms : What are these changes? How have they impacted accounting and reporting for firms that use leasing in their business?
Explain the disease-oriented medical model of health care : From a public health perspective, why is it important to shift from a disease-oriented medical model of health care to one of a health promotion and prevention.
What the payback period for the uneven cash flows is : What the payback period for the uneven cash flows is? Harrison Company is considering an investment in a new automated production system
What is the amount of the company total liabilities : Owner's capital is $22,000; drawings are $5,400; revenues, $48,000; and expenses, $41,000. What is the amount of the company's total liabilities
What are the top 10 canadian stocks : What are the top 10 Canadian stocks below $9? One example is the cineplex stock.
Provide a critical analysis of the factors : Kindly provide a critical analysis of the factors that should be taken into account when considering hard systems approaches to change
Compute the total cost of the unit in ending work-in-process : Compute the total cost of the units in the ending work-in-process inventory at March 31 is, Using the weighted average method

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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