The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company: Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Delta's expected future cash flows. To answer this question, Cute Camel's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.)
Answers
The project's conventional payback period for Cute Camel Woodcraft Company is 4.38 years.
To compute the project's conventional payback period for Cute Camel Woodcraft Company, we need to complete the table using the given expected net cash flows. The payback period is the time it takes for a project to recover its initial investment.
Here is the table:
| Year | Expected Net Cash Flow |
|------|-----------------------|
| 0 | -$150,000 |
| 1 | $40,000 |
| 2 | $50,000 |
| 3 | $60,000 |
| 4 | $70,000 |
| 5 | $80,000 |
To compute the payback period, we start by subtracting the cash flow for each year from the initial investment. We continue this process until the cumulative cash flow becomes positive.
1. Year 0: -150,000 - 40,000 = -190,000
2. Year 1: -190,000 + 40,000 = -150,000
3. Year 2: -150,000 + 50,000 = -100,000
4. Year 3: -100,000 + 60,000 = -40,000
5. Year 4: -40,000 + 70,000 = 30,000
6. Year 5: 30,000 + 80,000 = 110,000
The payback period is between Year 4 and Year 5, where the cumulative cash flow becomes positive. To find the exact payback period, we interpolate between Year 4 and Year 5:
Payback period = Year 4 + (Positive cash flow / Cash flow in Year 5)
Payback period = 4 + (30,000 / 80,000) = 4.38 years
Therefore, the project's conventional payback period for Cute Camel Woodcraft Company is 4.38 years.
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Related Questions
when posting a job vacancy, it is important to post the minimum, midpoint, and maximum pay range so candidates know the
Answers
The major reason why it is important to post the minimum, midpoint, and maximum pay range when posting a job vacancy is so candidates know the:
Multiple Choice pay grade.When a prospective employer posts up a job vacancy advertisement, it is important that the employer posts the minimum, midpoint and the maximum pay range so that the candidates would be better informed about the salary scale.
With this in mind, we can see that this helps the prospective employees to know just how much they are expecting to be paid as they know the different pay ranges for the job advertised.
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What is an example of a biological hazard?
A. Norovirus
B. Chlorine
C. Insulation
D. Hair
Answers
A typical example of a biological hazard is: A. Norovirus.
What is a biological hazard?A biological hazard is also referred to as biohazard and it can be defined as any type of biological substance which poses risk to the general well-being and health of a living organism such as:
NorovirusBacteriaFungiIn this context, we can infer and logically deduce that a typical example of a biological hazard is norovirus.
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A target market profile describes a target audience. Show knowledge of this concept, by: a. Identifying the segmentation variables used in a target market profile. b. Listing one specific data type included under each variable. c. Explaining why a target market profile is vital to the marketing process.
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A target market profile is a clear description of a brand's ideal customers or consumers. This information is developed based on market research and serves as a blueprint for brand marketing strategies and advertising campaigns.
In essence, a target market profile describes the ideal audience a brand seeks to reach.
Identifying segmentation variables used in a target market profile
The following are segmentation variables used in a target market profile and their respective data types.
1. Demographic: Age, gender, income, education, occupation, marital status, nationality, race, religion, and family size.
2. Psychographic: Personality, values, interests, lifestyle, social status, beliefs, and opinions.
3. Geographic: Physical location, climate, terrain, urban/rural, region, time zone, and population density.
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Both individuals and organizations can be consumers.
O True
O False
Answers
Answer:
True
Explanation:
Are balloon payments a good idea?
Answers
A balloon payment can benefit buyers who have the necessary savings, and it can also benefit investors by releasing short-term cash. However, in the majority of situations, balloon repayments are a simple way to get into debt.
The final payment will likely be very enormous, as indicated by the phrase "balloon." Balloon payments often cost at least twice as much as the prior installments on the loan. Balloon payments are more frequent in commercial lending than in consumer lending since the ordinary homeowner often cannot afford a very big balloon payment at the end of the mortgage.
As the balloon payment approaches, the majority of homeowners and borrowers want to either refinance their mortgage or sell their home before the loan's maturity date. Businesses frequently use balloon loans to take advantage of lower initial payments to satisfy their short-term financial needs before making the balloon payment. During the loan term, this sort of loan specifically designs earlier payments to be smaller and later payments—often simply the last payment—to be bigger.
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Lower monthly repayments are a major advantage of an RV or balloon payment. This is due to the fact that over the loan's full duration, you are in fact paying interest on the balance of the residual value as well as balloon payment.
Define the term balloon payments?A balloon payment is a one-time, larger-than-normal payment due at the conclusion of the loan term.
A balloon payment is a one-time, large-scale principal payment made near the end of the loan term. A balloon payment is an exaggerated one-time sum owed, typically after interest-only installments have been made throughout the term of the loan, rather than paying down principal and over course of the loan.The benefits of balloon payments are-
Typically, there is no need for a deposit.Your ability to manage cash flow might benefit from it.You can fill financial shortfalls and release short-term capital.There will be a reduced monthly repayment fee.You can purchase a newer or perhaps more expensive car if your loan amount is increased.To know more about the balloon payments, here
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how to use service economy and consumer and also producer in a sentence
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To use service economy and consumer and also a producer in a sentence, you could say:
"The service economy relies on both consumers and producers to drive growth, as consumers demand services and producers meet those demands through their offerings."
What is a Service Economy?The term "service economy" might apply to either of two current economic developments: The growing prominence of the service industry in developed economies.
The current Fortune 500 list includes more service businesses and fewer manufacturing than prior decades.
The service-based economy is distinguished by a dominant tertiary sector, an availability of services, a limited number of manufacturers, and the majority of service-based economies being located in first-world nations.
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The name of Internet Web sites are referred to as their _____ name.
its domain
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Answer:
Domain names . good luck ;)
Which examples demonstrate workplaces common to Management workers? Check all that apply. Lamont has a separate office with a door so he can discuss confidential information with employees. India works from home all the time at a small desk in her kitchen and does not interact with others very often. Zoe frequently travels to the different locations of her large company to meet with the workers she supervises. Mickey sits at a desk out in the open in a busy office environment and is responsible for greeting new visitors.
Answers
Answer:
a and c
Explanation:
.
Lamont has a separate office with a door, so he can discuss confidential information with employees and Zoe frequently travels to the different locations of her large company to meet with the workers she supervises are the examples demonstrate workplaces common to Management workers. Hence, options A and C are correct.
What is Management workers?A general manager, business manager, administrator, director, or other person who has operational or managerial control over, or who directly or indirectly manages, the day-to-day operations of a facility, organization, or agency is referred to as a managing employee.
Top-level managers, middle managers, first-line managers, and team leaders are the four most typical categories of managers. These positions differ not only in terms of their daily duties but also in terms of their overall role within the company and the types of personnel they supervise.
To accomplish particular objectives, managers plan, organize, direct, and control resources. The best strategy to accomplish their goals is determined throughout the planning process. In order to execute the company's strategy, resources must be allocated.
Thus, options A and C are correct.
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Which of the following is an example of sustainable farming
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Sustainable farming focuses on producing long-term crops and livestock, while also having minimal effects on the environment.
Employees tend to stay with one company for their entire careers.
Please select the best answer from the choices provided
OTrue
OFalse
Answers
Answer:The answer would be true, unless the employee had to leave for personal reasons
Explanation:
Assume that three identical units are purchased separately on the following three dates and at the respective costs:________. June 1 at $10 June 2 at $15 July 4 at $20 The company sells two units during the period. Conclude which inventory items are sold first and which unit remains in ending inventory if the company is using the LIFO perpetual cost flow assumption.
Answers
Answer:
Under last in, first out (LIFO) inventory method, the units purchased last are used to determine the cost of goods sold. This doesn't mean that exactly the last units purchased will be sold first, it is just used as an accounting tool.
In this case, the last unit purchased costed $20, and the immediately previous one costed $15. Under LIFO, these 2 units would have been sold (COGS = $35), and the ending inventory = $10 (the price of the "oldest" unit).
Are you surprised a couple with a joint income of $200,000 is priced out of the housing market well above average in the US approximately 6% of the population? Explain!
At least three sentences to be put as the brainliest. Due tomorrow!
Answers
A couple with a $200,000 joint income is priced out of the housing market It's not unexpected, especially in locations where the cost of living is high and demand for property is high.
The given question is an opinion based on the answer written in a generalized manner keeping in mind the income and housing market of the United States.
The high cost of housing can have serious consequences for people, families, and communities. since people with higher earnings may be able to buy houses, It may result in growing economic inequality.
The high cost of housing in the United States is a complex issue driven by a variety of factors, including economic trends, government regulations, and social attitudes.
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to file your federal and state taxes you ____________
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Taxes are often paid to government from our income. To File a Federal and State Income Tax Return, one must first need to find out how much money made the previous year. Then one need to decide if to take the standard deduction or itemize your return. Finally, you'll need to submit everything.
Steps to take so as to File a Tax Return
Try and compile your paperwork, including A W-2 form from each employer, other earning and interest statements etc.Then one need to Choose your filing status. Filing status is often based on if you're married. The percentage you pay toward household expenses also affects your filing status. The individual has to decide how you want to file your taxes. The IRS often recommends using tax preparation software to e-file for the easiest and most accurate returns. Find out if one is taking the standard deduction or itemizing your return.If an individual owe any money, learn how to make a tax payment and also apply for a payment plan.
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Answer:
must prepare the same tax forms for both
Explanation:
trust (i did this quiz 4 times thru to get the right answer)
If an economy can increase its steady annual growth rate from 1 percent to 1.5 percent, this reduces the time it takes for the economy to double in size by approximately ________years. O 5 O 8
O 33 O 17 O 23
Answers
The time it takes for an economy to double in size can be shortened by about 23 years if it can raise its constant annual growth rate from 1 percent to 1.5 percent.
When annual growth rates rise from 1% to 1.5%, the time decreases by 23 years.
Rule 70 states that the time it will take the economy to double is equal to 70 divided by the growth rate.
If the growth rate is 1%, it will take the economy 70 years to double in size.
Given a 1.5 percent growth rate, it will take the economy 47 years to double in size.
Time decreases by 70 years, 47 years, and 23 years when annual growth rates rise from 1% to 1.5%.
Growth rates are the changes in a particular variable's percentage over a given period of time. Growth rates can be either positive or negative, depending on whether the variable's size is changing over time or not. Growth rates were initially employed by biologists to study population sizes, but they have since been used to other fields such as economics, business management, and investment returns.
Increase rates for investors often reflect the compounded yearly rate of growth of an investment, or the revenues, earnings, or dividends of a corporation. Gross domestic product (GDP) and unemployment are two macroeconomic terms that are also analyzed using growth rates. Two popular types of growth rates used for analysis are expected forward-looking and trailing growth rates.
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the blending of advertising, sales promotion, publicity, and personal selling is referred to as the .
Answers
The blending of advertising, sales promotion, publicity, and personal selling is referred to as the Marketing Communications Mix or Promotional Mix.
This concept represents a combination of various tools and strategies that businesses use to communicate their value propositions and key messages to their target audience. The goal is to create awareness, build interest, and ultimately drive sales for products or services.
Advertising involves creating and delivering paid messages through various media channels such as television, radio, print, and online platforms. It is a powerful way to reach a large audience, create brand awareness, and influence consumer perceptions.
Sales promotion encompasses various short-term incentives, offers, and discounts that aim to stimulate customer interest, increase product demand, and encourage purchases. Examples include coupons, contests, and product samples.
Publicity refers to unpaid media exposure and coverage that a company receives, which can have a significant impact on brand image and consumer perception. Public relations activities, such as press releases and event sponsorships, are used to generate positive publicity and maintain a strong relationship with the media.
Personal selling is a direct, one-to-one approach where sales representatives engage with potential customers, build rapport, and provide personalized information to help persuade them to make a purchase. This method is particularly effective in B2B transactions and high-value products or services.
In conclusion, the Marketing Communications Mix is a strategic blend of advertising, sales promotion, publicity, and personal selling techniques used to communicate with target audiences effectively. By employing the right mix of these strategies, businesses can achieve their marketing goals and create a positive impact on consumers.
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Which of the following constitute the three forms in which AS increases following a reduction in marginal tax rates? (3)
(Check all that apply)
A. More entrepreneurship
B. Greater work effort
C. More capital investment
D. More saving
E. Less government intrusion
Answers
The three forms in which aggregate supply (AS) increases following a reduction in marginal tax rates are:
A. More entrepreneurship
B. Greater work effort
C. More capital investment
Therefore, options A, B, and C are the correct answers. Options D and E are not directly related to the impact of a reduction in marginal tax rates on aggregate supply. However, a reduction in tax rates can indirectly encourage individuals to save more, leading to increased capital accumulation and, thus, an increase in AS. Additionally, a reduction in government intervention can improve market efficiency and increase the incentives for entrepreneurship, resulting in an increase in AS.
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According to the following table, which of these factors affects your credit
score the least?
Percent affects score
Max # of points
2973
Factor
wwarded
Payment history
Amount owed
Length of credit
history
New credit
Types of credit
30%
15%
1275
10%
10%
85
85
Answers
Answer: New credit
Explanation:
According to the following table, new credit, of these factors affects your credit score the least. Therefore, option (a) is correct.
What is credit score?Based on a thorough examination of a person's credit files, a credit score is a numerical representation that reflects their creditworthiness. Credit scores are determined by statistically analyzing a person's financial history, which includes their payment history, credit utilization, duration of credit history, categories of credit utilized, and most recent credit queries.
A person who has applied for new credit is said to have credit lines or loans that they did not previously have. One component of a person's credit report, it impacts whether their credit score will increase or decrease. Because it adds a hard query to their credit report, applying for new credit can temporarily lower a person's credit score.
As a result, the significance of the these factors impacts credit score the least are the aforementioned. Therefore, option (a) is correct.
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The effects of tariffs and quotas are: a(n) __________ in consumers' surplus, and a(n) __________ in producers' surplus.
Answers
Answer:
decrease; increase
Explanation:
please help this is for economics
Answers
Answer: its not clear
Explanation:
do u mind send or uploading it again?
Community colleges and vocational schools offer programs in maintenance and repair.
A
True
B.
False
Answers
what is the impact of atm on banking sector?
Answers
Answer:
Explanation:
ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required
ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.
Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.
With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.
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Can you think of a bad decision from your own school or work experience, or from recent business or political news stories, that was made in an effort to correct or justify a past decision?
Answers
Answer:
Explanation:
Personal Experience:
One time I had to turn in an assignment for the company that I worked for which needed to be done and turned in by the end of the workday. I failed to do so due to family issues. This assignment was incredibly important and failure to turn it in would have cost the company a lot of money. So I stayed up all night and finished the assignment. I ended up breaking into the office in the middle of the night to turn it in before the boss found out. It was a bad decision since I could have gotten arrested or fired.
The fact that a bank's assets tend to be long-term while its liabilities are short-term creates:
a. interest-rate risk.
b. credit risk.
c. lower risk for the bank, this is why they follow this strategy.
d. trading risk.
Answers
a. interest-rate risk. Bank's assets tend to be long-term while its liabilities are short-term creates.
What is assets?Assets are tangible or intangible resources that a person or business owns. Assets can be short-term or long-term investments and can be used to generate income or increase value. Examples of assets include cash, real estate, investments, inventory, equipment, vehicles, and intellectual property. They can be classified as current assets or non-current assets depending on their expected lifespan. Current assets are those that are expected to be realized within one year, while non-current assets are those that are expected to be owned for more than one year. Assets are important for businesses because they are used to generate revenue, pay expenses, and increase shareholder value. Additionally, assets provide liquidity, which allows businesses to generate cash flow and make investments.
Therefore the correct answer is A.
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Yuengling is the oldest brewery in the united states. it was founded in 1827 in a time when small breweries dotted the nation. for many years, the brewery only sold in a ten-state area on the eastern seaboard to high-end restaurants. during those years, this company used a _____________ strategy.
Answers
Geographical focus on the eastern seaboard, targeting high-end restaurants with limited market expansion.
Geographical focus in the context of the brewery's strategy refers to the deliberate concentration of their distribution efforts on a specific region, namely the eastern seaboard.
By narrowing their target market geographically, the brewery aimed to establish a strong presence and build a reputation within a limited area.
This approach allowed them to cater to high-end restaurants in that region, ensuring a consistent demand for their products.
By focusing on a specific geography, the brewery could allocate resources effectively and establish a strong foothold before considering expansion into broader markets.
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no matter what the probability distribution of future exchange rates is, as long as one out of several scenarios results in a negative net present value (npv), a project should not be accepted. True or false?
Answers
The statement is true because the net present value (NPV) of a project is a crucial factor in deciding whether to accept or reject a project.
NPV is the difference between the present value of cash inflows and the present value of cash outflows, taking into account the time value of money. If the NPV is positive, it means that the project is expected to generate a return higher than the required rate of return.
Conversely, if the NPV is negative, it indicates that the project will not generate sufficient returns to cover the cost of capital. Therefore, if one out of several scenarios results in a negative NPV, it is a clear indication that the project is not financially viable and should not be accepted, regardless of the probability distribution of future exchange rates.
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Last year, Sally had a gross profit margin of 68% in her hair salon. Her gross profit was $32,508. 63. How much did Sally make in net sales last year? a. $16,398. 06 b. $22,105. 87 c. $35,610. 25 d. $47,806. 81.
Answers
To find the net sales of Sally's hair salon, we need to calculate her total revenue generated in the year. Gross profit is defined as the amount of money a business earns after deducting the cost of goods sold (COGS).
It is typically represented as a percentage of total revenue. The formula for gross profit margin is: Gross Profit Margin = Gross Profit ÷ Total Revenue We know that Sally's gross profit margin was 68% and that her gross profit was $32,508.63. Let's use this information to find her total revenue:0.68 = $32,508.63 ÷ Total Revenue Total Revenue = $32,508.63 ÷ 0.68 Total Revenue = $47,806.81
Therefore, Sally's net sales for the year were $47,806.81. Hence, the correct option is d. $47,806.81.
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9. The cost for a car is $500 000, a decountered of 5% will be offered if the money is peld within 1 year. What is the trade discount?
Answers
Answer:
The trade discount is the discount of 5% equivalent to $25,000
Explanation:
The question parameters are;
The cost of the car, c = $500,000
The amount the car's list price is discounted = 5%
The duration over which the payment for the car should be made to receive the discount = 1 year
Therefore, the trade discount is the 5% of the list price, which is equivalent to 5/100 × $500,000 = $25,000
A trade discount is a reduction of the retail price of a good which a wholesaler or manufacture of the good gives a trader, which may be a wholesaler or a retailer based on certain agreements, when a group of goods or a particular type of goods is purchased
They have fixed costs of £200 per month Each item's raw materials cost £50 The items sell for £150 each
What is the Break Even Point for the business?
Answers
Answer:
2 unit
Explanation:
The break-even point is that point at which a business makes no profit after settling all the necessary fixed cost for the period. It is the point preceding profit making at which costs are recovered
It is calculated by dividing the fixed costs with the sales revenue less the variable cost per unit of an item.
Workings
Fixed cost = 200
Selling price = 150
Variable cost = 50
Break even point = 200/(150-50)
=2 units
Any sales below this ends up in a loss as the fixed cost will not be fully recovered.
_____ tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness. a. Capital goods b. Financial stocks cyclical companies do. Consumer staples e. Consumer durable goods
Answers
T/F the unemployment rate includes marginally attached workers and underemployed workers.
Answers
The unemployment rate includes marginally attached workers and underemployed workers. This is a true statement.
What does unemployment rate actually mean?A person's percentage of the labor force who is jobless is known as the unemployment rate. Thus, recognizing the labor force is required in order to calculate the unemployment rate. All employed and persons are a part of the labor force.
Why is unemployment a problem?Unemployment is cyclical when there is little consumer demand. When demand declines, businesses suffer too many losses. Employees must be let go if the company doesn't anticipate a quick increase in sales. It is cyclical because the increasing unemployment leads to a further decline in consumer demand.
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