The amount that Sheryl will have at the end of year 20, rounded to the nearest dollar, is $597,126. The closest option to this number is B) $597,125.
To calculate the amount that Sheryl will have at the end of year 20, we need to use the future value formula:
FV = PV * (1 + r)^n
where:
- FV is the future value of the investment (what we want to find)
- PV is the present value of the investment (the total amount that Sheryl will save over the 20 years)
- r is the expected rate of return (10% per year, or 0.1 per year)
- n is the number of compounding periods (20 years, since Sheryl is saving for 20 years)
First, we need to find the present value of the investment. This is equal to the sum of all the savings that Sheryl plans to make over the 20 years. If she saves $5000 in year 1, $6000 in year 2, and amounts increasing by $1000 each year through year 20, we can calculate the present value as follows:
PV = $5000 + $6000/(1 + 0.1) + $7000/(1 + 0.1)^2 + ... + $22000/(1 + 0.1)^19
PV = $122,824.14
Next, we can find the future value of Sheryl's investment at the end of year 20 by plugging in the values of PV, r, and n into the future value formula:
FV = $122,824.14 * (1 + 0.1)^20
FV = $597,125.58
for more such questions on dollar
https://brainly.com/question/30045180
#SPJ8
Andreea and Carine shares and one of her partnership na 227 pectively if the net come 1000,000, cuale Carts share of the protes do not ac OA $STR777 OB. $200,304 OC. $245.45 OD. $102.636
Given that Andreea and Carine share in a partnership in the ratio of 2:2:7 respectively. If the net income is $1000,000, what is the share of Cart in the profits?
Let us solve this question by finding the sum of the ratios i.e, 2 + 2 + 7 = 11C.
art's share in the profits is 7 parts out of the total 11 parts. Hence, the ratio of Cart's share of the profit is 7/11.
Now, we can calculate Cart's share of the profits by multiplying the ratio of Cart's share with the total net income.
Carts share of the profits = (7/11) x $1000,000= $636363.63636364.
Thus, the answer is option D. $102.636.
To know more about net income visit:
https://brainly.com/question/31816607
#SPJ11
What signs of change resistance might a supervisor or co-worker look to detect when managing a boundaryless work assignment?
2. How might strong leadership be used to motivate and redirect resistant individuals or teams?
1. Supervisors or co-workers managing a boundaryless work assignment should look for signs of change resistance, such as Increased negative attitude, Lack of participation, Increased absenteeism, etc.
2. Effective leadership involves understanding and addressing the specific needs and concerns of resistant individuals or teams while inspiring them to embrace change and achieve desired outcomes.
Supervisors or co-workers managing a boundaryless work assignment should look for signs of change resistance, such as:
1. Increased negative attitude or skepticism towards the assignment.
2. Lack of participation or engagement in the project.
3. Frequent complaints or resistance to new ideas or suggestions.
4. A decline in productivity or quality of work.
5. Unwillingness to collaborate or share information with others.
6. Increased absenteeism or lack of commitment to the project.
7. Persistent questioning or challenging of authority or decisions related to the assignment.
Question 2
Strong leadership can be used to motivate and redirect resistant individuals or teams by:
1. Communicating a clear vision and purpose: Clearly explain the goals and benefits of the assignment to help individuals or teams understand the importance and potential positive impact.
2. Building trust and rapport: Establish a trusting relationship by actively listening to concerns, showing empathy, and addressing any issues or barriers to change.
3. Providing support and resources: Offer necessary training, guidance, and resources to help individuals or teams succeed in the new work assignment.
4. Recognizing and rewarding progress: Acknowledge and appreciate the efforts and achievements of individuals or teams, reinforcing their motivation and encouraging further engagement.
5. Leading by example: Demonstrate enthusiasm, commitment, and adaptability in your own work, serving as a role model for others to follow.
6. Encouraging collaboration and participation: Foster a collaborative work environment where individuals feel valued and included in decision-making processes.
7. Addressing resistance directly: Engage in open and honest conversations to understand the reasons for resistance and work together to find solutions or compromises.
Learn more about Leadership:
brainly.com/question/1232764
#SPJ11
Bernice's preferences can be represented by the utility function, U(x, y)-min(x, y). She faces prices ($2, $1), and her income is $12. If prices change to ($3, 31), the compensating variation a. There is not enough information to determine which variation is larger. b. equals the equivalent variation. c. is $1 greater than the equivalent variation d. is $2 smaller than the equivalent variation. e is $2 greater than the equivalent variation. Next page
Therefore, the compensating variation when the prices change from ($2, $1) to ($3, $31) is $1.83, which is greater than the equivalent variation.Option (E) is the correct answer.
According to the given information,Bernice's preferences can be represented by the utility function, U(x, y)-min(x, y).
She faces prices ($2, $1), and her income is $12. If prices change to ($3, 31), the compensating variation can be calculated by the following steps:
Step 1: Initially, the utility of Bernice can be calculated using the given utility function. Bernice's income is $12 and the prices are $2 and $1, so the equation will be:
U(x, y) = min(x, y) ⇒ U(x, y)
= min($2x, $1y) $2x + $1y
= $12
The equation is formed using the budget constraint and the utility function, which can be rewritten as
y = $12 - 2x2x + y
= $12/y - (1/2)x
The above equation is slope-intercept form. Therefore, slope = -(1/2) and intercept
= $12/y.
Hence, the marginal utility is -(1/2).
Step 2: Bernice faces new prices ($3, 31) after some time, so the new equation will be:
U(x, y) = min(x, y) ⇒ U(x, y)
= min($3x, $31y)$3x + $31y
= $12
The equation is formed using the budget constraint and the utility function, which can be rewritten as
y = $12 - (3/31)x2x + y
= $12/y - (31/3)x
The above equation is slope-intercept form. Therefore, slope = -(31/3) and intercept = $12/y.
Hence, the marginal utility is -(31/3).
Step 3: The formula for calculating the compensating variation is given below:Compensating variation = old income - new income at old prices = $12 - new income at new prices
The new income at new prices can be calculated by substituting the slope-intercept values of the budget constraint equation in the above equation,Compensating variation = $12 - [(3/31)x' + y']
In order to calculate the compensating variation, we have to find x' and y'. For that, we can use the following steps:As the marginal utility is equal to the slope of the budget constraint equation, we know that the indifference curve is perpendicular to the budget constraint equation.
Thus, the new optimal point will lie on the budget line and on the indifference curve. Therefore, we can substitute the values of the old prices in the indifference curve equation.
That is, $2x + $1y
= $3x' + $31y' ⇒ $2x - $3x'
= $31y' - $1y
Therefore, we can get the value of x' and y' by solving the above equation along with the budget constraint equation, $3x' + $31y' = $12.
Compensating variation = $12 - [(3/31)x' + y']
Putting the values of x' and y' in the above equation,Compensating variation = $12 - [$6/(35/3) + $18/35] ≈ $1.83
Therefore, the compensating variation when the prices change from ($2, $1) to ($3, $31) is $1.83, which is greater than the equivalent variation.Option (E) is the correct answer.
To know more about function visit;
brainly.com/question/30721594
#SPJ11
Present a reflection where the technological and economic processes that led to the globalization of the economy are evidenced, with emphasis on the changes that have occurred since the industrial revolution, incorporating the processes of social arrangements, from manual work, mechanization and the line of assembly, in the production processes, until reaching the global society.
The globalization of the economy resulted from technological advancements since the industrial revolution, transforming production processes and enabling global trade, while also posing challenges of inequality and cultural homogenization.
The globalization of the economy has been a result of technological advancements and economic processes that have evolved since the industrial revolution. The shift from manual work to mechanization and the introduction of assembly lines transformed production processes, leading to increased productivity and efficiency. These developments fueled economic growth and allowed for the mass production and distribution of goods on a global scale.
Furthermore, advancements in transportation, communication, and information technology have facilitated global trade and integration. The internet and digital platforms have connected businesses and consumers across borders, enabling the flow of capital, goods, and services worldwide.
These processes have also influenced social arrangements, creating a global society where cultures, ideas, and information are shared instantaneously. However, globalization has not been without its challenges, such as economic inequality and cultural homogenization. It is essential to address these issues to ensure a more inclusive and sustainable global economy.
To learn more about globalization click here
brainly.com/question/14667036
#SPJ11
Fred is paid an annual salary of $41100 on a biweekly schedule for a 40-hour work week. Assume there are 52 weeks in the year. What is his total remuneration for a two- week period in which he worked 6.5 hours overtime at time-and-a-half? a. 1712.5 b. 1905.16 c. 1789.48 d. 1773.43 e. 1580.77
The correct option is (d) 1773.43. Fred's annual salary = $41,100Total number of weeks in a year = 52Fred's bi-weekly salary = Annual salary / Total number of bi-weeks= $41,100 / 26 bi-weekly periods= $1580.77Fred worked for 6.5 hours overtime in a two-week period.
Fred is paid time-and-a-half for the overtime he worked. Time and a half pay = 1.5 times his regular hourly rate. Fred's regular hourly rate = Bi-weekly salary / 80 hours= $1580.77 / 80 hours= $19.76 per hour. So, Fred's time and a half hourly rate = 1.5 * $19.76 per hour= $29.64 per hourTotal overtime pay for 6.5 hours = $29.64 * 6.5= $192.66.
Therefore, the total remuneration for a two-week period in which he worked 6.5 hours overtime at time-and-a-half is:$1580.77 + $192.66= $1773.43 Therefore, the correct option is (d) 1773.43.
To know more about Annual salary visit:-
https://brainly.com/question/16022344
#SPJ11
PLS HELP ME!!!!! Yousra is trying to think of solutions to a problem. She wants to brainstorm lots of possible answers. What is MOST LIKELY the method of thinking she should use? O A. revergent thinking O B. multiplicative thinking O C. convergent thinking O D. divergent thinking.
I can help you with your question. Based on the information I found on the web, convergent thinking is the type of thinking that focuses on coming up with the single, well-established answer to a problem. It is oriented toward deriving the single best, or most often correct answer to a question. Convergent thinking emphasizes speed, accuracy, and logic and focuses on recognizing the familiar, reapplying techniques, and accumulating stored information. It is most effective in situations where an answer readily exists and simply needs to be either recalled or worked out through decision making strategies.
On the other hand, divergent thinking is a thought process or method used to generate creative ideas by exploring many possible solutions. It typically occurs in a spontaneous, free-flowing, "non-linear" manner, such that many ideas are generated in an emergent cognitive fashion. Many possible solutions are explored in a short amount of time, and unexpected connections are drawn. Following divergent thinking, ideas and information are organized and structured using convergent thinking.
Based on these definitions, it seems that divergent thinking is most likely the method of thinking that Yousra should use if she wants to brainstorm lots of possible answers to a problem. Divergent thinking can help her generate many creative and original ideas without being limited by existing knowledge or conventional solutions. Convergent thinking can be useful after divergent thinking to evaluate and select the best ideas from the brainstorming session.
I hope this helps you understand the difference between convergent and divergent thinking.
Here are some examples based on the information I found on the web:
- Convergent thinking: If you are asked to find the area of a rectangle with a length of 10 cm and a width of 5 cm, you would use convergent thinking to apply the formula A = L x W and get the answer of 50 cm.
- Divergent thinking: If you are asked to come up with as many ways as possible to use a paper clip, you would use divergent thinking to generate creative ideas such as bending it into a hook, a ring, a bookmark, a lock pick, etc.
- Convergent thinking: If you are asked to choose the best answer from four options on a multiple-choice test, you would use convergent thinking to eliminate the wrong options and select the correct one.
- Divergent thinking: If you are asked to write an essay on a topic of your choice, you would use divergent thinking to explore different perspectives, arguments, examples, and styles.
- Convergent thinking: If you are asked to solve a crossword puzzle, you would use convergent thinking to find the words that fit the clues and the grid.
- Divergent thinking: If you are asked to create your own crossword puzzle, you would use divergent thinking to come up with words, clues, and a layout.
I hope these examples help you understand how convergent and divergent thinking can be applied in different situations.
Change Plan Evaluation
How will you evaluate the success of your Organisational Development Action Plan with respect to improving satisfaction and morale, increasing engagement, reducing work intensification and addressing survivor syndrome? Outline three methods you will employ to evaluate these outcomes.
These methods include Employee Surveys or Questionnaires, Focus Group Discussions or Interviews, Key Performance Indicators (KPIs).
To evaluate the success of an Organisational Development Action Plan in improving satisfaction and morale, increasing engagement, reducing work intensification, and addressing survivor syndrome, three evaluation methods can be employed. These methods include conducting employee surveys or questionnaires, analyzing key performance indicators (KPIs) related to employee well-being and productivity, and organization focus group discussions or interviews with employees.
1. Employee Surveys or Questionnaires: Administering surveys or questionnaires to employees can provide valuable insights into their satisfaction, morale, and engagement levels. The surveys can include specific questions related to the desired outcomes of the Organisational Development Action Plan, such as job satisfaction, work-life balance, perceived stress levels, and commitment to the organization. Analyzing the survey responses can help assess changes in satisfaction and morale over time.
2. Key Performance Indicators (KPIs): Monitoring relevant KPIs related to employee well-being and productivity can provide quantitative data on the impact of the action plan. KPIs could include metrics such as employee absenteeism rates, turnover rates, productivity levels, employee feedback on performance appraisals, and overall organizational performance indicators. By comparing these KPIs before and after implementing the action plan, the effectiveness of the plan in reducing work intensification and addressing survivor syndrome can be evaluated.
3. Focus Group Discussions or Interviews: Organizing focus group discussions or conducting interviews with employees allows for qualitative feedback and in-depth exploration of their experiences and perceptions. These discussions can uncover insights into factors that contribute to satisfaction, morale, engagement, and the presence of survivor syndrome. They provide an opportunity for employees to express their views, concerns, and suggestions for improvement. Analyzing the themes and feedback gathered from these discussions can help assess the impact of the action plan on employees' well-being and address any ongoing challenges.
Using a combination of quantitative and qualitative evaluation methods provides a comprehensive understanding of the outcomes and effectiveness of the Organisational Development Action Plan in improving satisfaction and morale, increasing engagement, reducing work intensification, and addressing survivor syndrome.
Learn more about organization here
brainly.com/question/12825206
#SPJ11
The benefits of using deferred compensation include all of the following, except that:
Multiple Choice
It serves as a screening device for hiring new workers.
It strengthens work incentives.
It fosters employee loyalty and reduces unwanted turnover.
It drives a wedge between the marginal revenue product and the wage.
It raises the cost to the employee of being fired for poor work, absenteeism and other work-ethic related issues.
The benefits of using deferred compensation include all of the following, except it does not drive a wedge between the marginal revenue product and the wage or raise the cost to the employee of being fired for poor work or work-ethic related issues.Thus,the correct option is (C) and (D).
Deferred compensation offers various advantages in the workplace. Firstly, it serves as a screening device during the hiring process. By offering deferred compensation, companies can attract candidates who value future income and are more likely to be committed and dedicated to their work.
Secondly, deferred compensation strengthens work incentives. It ties compensation to performance, motivating employees to strive for better results in order to receive their deferred payments. This can lead to increased productivity and improved work behavior.
Additionally, deferred compensation fosters employee loyalty and reduces turnover. Employees who have a stake in future payments are more inclined to stay with the company for a longer period, reducing recruitment and training costs for the employer.
However, it is important to note that deferred compensation does not drive a wedge between the marginal revenue product and the wage. In other words, it does not create a significant discrepancy between the value an employee generates for the organization (marginal revenue product) and the wage they receive. Deferred compensation typically defers a portion of an employee's earnings rather than altering the wage structure itself.
Furthermore, it does not raise the cost to the employee of being fired for poor work or work-ethic related issues. While deferred compensation may be contingent upon continued employment, the consequences of being fired for such reasons are not directly influenced by the deferred compensation arrangement.
Learn more about revenue here: brainly.com/question/14510611
#SPJ11
Annual Sales 24,324,000
Net Income 2,975,000
cost of goods sold 12,600,000
total assets 10,550,000
inventory 2,875,000
reciveables 3,445,000
Compute the profit margin ( round your answer to 2 decimal places)
Compute the asset turnover (( round your answer to 3 decimal places)
Compute the return on assets ratio ( round your answer to 3 decimal places)
Profit Margin: 12.24%
Asset Turnover: 2.305
Return on Assets Ratio: 28.22%
To calculate the profit margin, we divide the net income by the annual sales and multiply by 100. The net income is given as $2,975,000, and the annual sales are $24,324,000.
Profit Margin = (Net Income / Annual Sales) * 100
= (2,975,000 / 24,324,000) * 100
≈ 0.1224 * 100
≈ 12.24%
Therefore, the profit margin is 12.24%.\
To calculate the asset turnover, we divide the annual sales by the average total assets. The annual sales are $24,324,000, and the total assets are $10,550,000.
Asset Turnover = Annual Sales / Total Assets
= 24,324,000 / 10,550,000
≈ 2.305
Therefore, the asset turnover is approximately 2.305.
To calculate the return on assets ratio, we divide the net income by the average total assets. The net income is $2,975,000, and the total assets are $10,550,000.
Return on Assets Ratio = Net Income / Total Assets
= 2,975,000 / 10,550,000
≈ 0.2822
Therefore, the return on assets ratio is approximately 0.2822 or 28.22%.
For more such questions on Profit Margin, click on:
https://brainly.com/question/28180283
#SPJ8
Please examine the Statement of Cash Flows and notes of your selected company. Answer the following questions: accompanying 1. Does the company use the direct or indirect method for computing cash flows from operating activities? What effect does depreciation have on cash flows? Have receivables, inventories, and payables had positive or negative effects on cash flows from operating activities? 2. What is the most important investing activity for the company in the most recent year? 3. What is the most important financing activity for the company in the most recent year?
As the name suggests, the statement of cash flows helps investors understand how much cash is generated by a company's operations, how much is used for investments in assets, and how much is used to pay off debts.
The direct method reports cash inflows and outflows from a company's operating activities; in contrast, the indirect method begins with net income and adjusts it for changes in non-cash items to arrive at operating cash flows. For computing cash flows from operating activities, the chosen company uses the indirect method. Depreciation expense reduces net income but is added back to operating cash flows because it does not involve a cash outflow. Receivables and inventories decreased while payables increased during the most recent year, thus having a positive effect on cash flows from operating activities. The most important investing activity for the company in the most recent year was the purchase of property, plant, and equipment (PP&E). The most significant financing activity for the company in the most recent year was the issuance of debt securities.
To know more about investments , visit;
https://brainly.com/question/29547577
#SPJ11
When common stock is issued by a corporation for a cash price above par value, the excess of the cash proceeds over the par value should be reported in the financial statements as a(n): O a. Addition in the Equity section O b. Subtraction in the Equity section Oc Addition in the Investments section Od. Subtraction in the Investments section The following accounts appear in the ledger of Moyer Corporation on December 31: $70,000 Preferred Stock Common Stock 46,000 7,000 Additional Paid-in Capital, Preferred Additional Paid-in Capital, Common Retained Earnings 18,000 40,000 A balance sheet prepared on December 31 would report total stockholders' equity of O $116,000 Ob. $156.000 O $131,000 Qd $141,000 $181.000 5:00 PRY Time
Answer:
When common stock is issued by a corporation for a cash price above par value, the excess of the cash proceeds over the par value should be reported in the financial statements as an addition in the Equity section. This excess is known as Additional Paid-in Capital or APIC, and it represents the amount of money that investors pay above the par value of the stock in order to invest in the company.
Regarding the second part of the question, the total stockholders' equity of Moyer Corporation on December 31 would be $156,000. This is calculated by adding the amounts of Preferred Stock, Common Stock, Additional Paid-in Capital for both Preferred and Common stock, and Retained Earnings.
Preferred Stock: $70,000 Common Stock: $46,000 Additional Paid-in Capital, Preferred: $18,000 Additional Paid-in Capital, Common: $7,000 Retained Earnings: $40,000
Total Stockholders' Equity: $70,000 + $46,000 + $18,000 + $7,000 + $40,000 = $156,000
Therefore, the answer is option b. Addition in the Equity section for the first part of the question and option b. $156,000 for the second part of the question.
Explanation:
A major input to an MRP system is:
BUSI2009.02 June 20 to June 20 Gerry Co. has a gross profit of $870,000 and depreciation expense of $300,000. Selling and administrative expense is $126,000. Given that the tax rate is 36 percent, com
The cash from operations for Gerry Co. is $444,240.
The cash from operations for Gerry Co. will be calculated using the formula:
Cash from Operations = Gross Profit – Selling and Administrative Expense – Depreciation Expense + Income Tax Expense
In this formula, the gross profit, selling and administrative expense, depreciation expense, and income tax expense must be known in order to determine the cash from operations.
Substituting the values given into the formula, we have:
Cash from Operations = $870,000 − $126,000 − $300,000 + 0.36($870,000 − $126,000 − $300,000)
Cash from Operations = $444,240
Hence, the cash from operations is $444,240.
Note: The question is incomplete. The complete question probably is: Gerry Co. has a gross profit of $870,000 and depreciation expense of $300,000. Selling and administrative expense is $126,000. Given that the tax rate is 36 percent, compute the cash from operations for Gerry Co.
Learn more about Gross profit:
https://brainly.com/question/21637154
#SPJ11
which of the following reflects the most common approach companies often use to enter the international arena? a. internet, partnerships b. exporting, recruiting c. partnerships, recruiting d. internal connections, outsourcing e. outsourcing, exporting
Partnerships exporting reflects the most common approach companies often use to enter the international arena. The most common approach that companies often use to enter the international arena is through exporting and partnerships.
Exporting involves selling goods or services produced in one country to customers in another country. Partnerships, on the other hand, involve forming strategic alliances or collaborations with local companies in foreign markets to leverage their knowledge, resources, and distribution networks.
By combining exporting and partnerships, companies can benefit from accessing new markets through exporting their products or services while leveraging the expertise, networks, and local market knowledge of their partners. This approach helps mitigate risks, navigate regulatory complexities, and gain a competitive advantage in the international market.
To learn more about companies, click here.
https://brainly.com/question/30532251
#SPJ4
points ellook Hint Saved Help Return on investment Save & Exit Submit Check my work An investment center of Rundle Corporation shows an operating income of $7,936 on total operating assets of $64,000. Required Compute the return on investment. (Round your answer to 2 decimal places. (.e., 0.2345 should be entered as 23.45).)
To compute the return on investment (ROI), we divide the operating income by the total operating assets and express the result as a percentage.
Return on Investment (ROI) = (Operating Income / Total Operating Assets) * 100
Return on investment (ROI) is calculated by dividing operating income by total operating assets and multiplying by 100 to express it as a percentage
ROI = (Operating Income / Total Operating Assets) * 100
Given:
Operating Income = $7,936
Total Operating Assets = $64,000
Substituting the values into the formula:
ROI = (7,936 / 64,000) * 100
= 0.1235 * 100
= 12.40%
Therefore, the return on investment (ROI) is 12.40%.
To know more about return on investment click here.
brainly.com/question/28622693
#SPJ11
a company buys a fixed asset on january 1, 2010 for $40,000. the accumulated depreciation for three years is $10,000. what will be the book value of the asset on december 31, 2012? the asset is sold on december 31, 2012 for $27,500. will the company make a profit from this disposal?
The book value of an asset is calculated by subtracting the accumulated depreciation from the initial cost of the asset. In this case, the fixed asset was purchased for $40,000 on January 1, 2010, and the accumulated depreciation for three years is $10,000. To find the book value on December 31, 2012, we need to subtract the accumulated depreciation from the initial cost.
Book value on December 31, 2012 = Initial cost - Accumulated depreciation
Book value on December 31, 2012 = $40,000 - $10,000
Book value on December 31, 2012 = $30,000
The asset was sold on December 31, 2012, for $27,500. To determine if the company made a profit, we compare the selling price with the book value.
Profit from disposal = Selling price - Book value
Profit from disposal = $27,500 - $30,000
Profit from disposal = -$2,500
Since the result is negative (-$2,500), it means the company did not make a profit from this disposal. Instead, they incurred a loss of $2,500.
to know about book value visit:
https://brainly.com/question/13334229
#SPJ11
What type of plan would be needed in wisely using a business
opportunity? For instance, short-term or long-term, or both?
Explain why you think these plans would be important.
In wisely using a business opportunity, both short-term and long-term plans are important. Each plan serves a different purpose and contributes to the overall success of seizing and maximizing a business.
Short-term plans are focused on immediate actions and goals that can be accomplished in the near future, typically within a few months to a year. These plans help businesses capitalize on the initial stages of an opportunity and take advantage of immediate benefits.
They involve setting specific, actionable objectives and determining the necessary steps to achieve them. Short-term plans allow businesses to respond quickly to market changes, adapt their strategies, and generate early wins that can build momentum.
1. Alignment and Focus: Having both short-term and long-term plans ensures that the business is aligned with its overall objectives. Short-term plans help in executing immediate actions that support the long-term vision. Without short-term plans, businesses may lose focus, miss opportunities, or get sidetracked by day-to-day operations. Without long-term plans, businesses may lack a clear direction and struggle to make decisions that align with their future goals.
2. Flexibility and Adaptability: Short-term plans allow businesses to be agile and adaptable to changing market conditions. They provide the flexibility to adjust strategies, tactics, and resource allocation based on immediate feedback and results. Long-term plans provide a framework for decision-making and help businesses investment stay on track despite short-term setbacks or unforeseen challenges. They serve as a guidepost and prevent businesses from being overly reactive or making impulsive decisions that could undermine long-term success
3. Measurement and Evaluation: Both short-term and long-term plans provide a basis for measuring progress and evaluating success. Short-term plans enable businesses to track key performance indicators and assess the effectiveness of their immediate actions.
Long-term plans provide a benchmark for evaluating progress toward long-term goals and making necessary adjustments to stay on course.
By combining short-term and long-term planning, businesses can seize business opportunities more effectively. Short-term plans provide the agility to respond quickly and capitalize on immediate advantages, while long-term plans provide a roadmap for sustained growth and competitiveness.
Together, these plans create a comprehensive framework for maximizing the potential of a business opportunity and driving long-term success.
Learn more about investment here: brainly.com/question/15105766
#SPJ11
Bridgeport had total debt of $513,300 and $768,500 as at December 31, 2020, and December 31, 2019, respectively, of which $95,000 and $140,000 was current. In addition, the company had total assets of $885,000 and $725,000 as at December 31, 2020, and December 31, 2019, respectively, of which $120,000 and $140,000 was current. Evaluate the company's debt-paying ability in 2020 and 2019. Debt-paying ability by calculating the debt to total assets ratio: (Round answers to O decimal places, e.g. 500%.) Debt-paying ability by calculating current ratio: (Round answers to 2 decimal places, e.g. 45.50.)
The debt-paying ability of the Bridgeport company in 2020 and 2019 can be evaluated by calculating the debt to total assets ratio and the current ratio. These ratios provide an understanding of how well the company can meet its short-term and long-term financial obligations.
Debt to total assets ratio The debt to total assets ratio shows the proportion of total assets that is financed by debt. A lower ratio indicates that the company has a better ability to repay its debts. The formula for the debt to total assets ratio is: Debt to total assets ratio = Total debt / Total assets Using the figures given in the question, the debt to total assets ratio for Bridgeport in 2020 and 2019 can be calculated as follows:
Debt to total assets ratio in 2020 = $513,300 / $885,000 = 58% Debt to total assets ratio in 2019 = $768,500 / $725,000 = 106% Current ratio The current ratio shows the company's ability to pay its short-term debts with its short-term assets.
A higher ratio indicates that the company is more capable of paying off its short-term liabilities. The formula for the current ratio is: Current ratio = Current assets / Current liabilities Using the figures given in the question, the current ratio for Bridgeport in 2020 and 2019 can be calculated as follows: Current ratio in 2020 = $120,000 / $95,000 = 1.26 Current ratio in 2019 = $140,000 / $140,000 = 1.00
Therefore, based on these ratios, Bridgeport's debt-paying ability improved in 2020 as compared to 2019. Its debt to total assets ratio decreased from 106% in 2019 to 58% in 2020. Moreover, the current ratio increased from 1.00 in 2019 to 1.26 in 2020, indicating an improvement in the company's ability to pay off its short-term debts.
To know more about assets visit:
https://brainly.com/question/14826727
#SPJ11
Different forms of businesses have different characteristics. Which of the following characteristics would apply to a partnership? Check all that apply. Income is allocated on a pro rata basis Taxed at individual level Can easily raise large amounts of capital Subject to unlimited liability Legal arrangement between two or more people Chartered by a state and is its own entity separate from its owners You come across different kinds of businesses every day. The following table describes some businesses. Using the description of each business, classify it as a sole proprietorship, a partnership, a corporation, or a limited liability company/limited liability partnership. Michael is self-employed and reports all of his income and expenses in his personal income-tax return. Tyler, the CEO of a beverage company, is required to certify the accuracy of information provided in the company's quarterly reports. Jackson started a business, based in a different state, with his uncle. Due to the business's underperformance, they had to close the business. Jackson, however, ended up losing his house due to a litigation claim. Selena and Mario run a law firm in Chicago. The firm has debt of $100,000, but Selena and Mario will not be held personally liable for the law firm's debt.
Michael represents a sole proprietorship. Tyler is part of a corporation. Jackson indicates a partnership. Selena and Mario indicates limited liability partnership.
Characteristics that apply to a partnership include income being allocated on a pro rata basis, being taxed at the individual level, and being a legal arrangement between two or more people. A partnership is not easily able to raise large amounts of capital and is subject to unlimited liability. Additionally, a partnership is not a separate entity chartered by a state.
A partnership is a legal arrangement between two or more individual who come together to carry on a business for profit. The characteristics that apply to a partnership are as follows:
1. Income is allocated on a pro rata basis: In a partnership, the profits and losses are typically divided among the partners based on their agreed-upon ownership or partnership agreement.
2. Taxed at the individual level: Partnerships are not subject to entity-level taxation. Instead, the partners report their share of the partnership's income or losses on their personal income tax returns.
3. Can easily raise large amounts of capital: Compared to corporations, partnerships may face challenges in raising large amounts of capital. Partnerships typically rely on the contributions and investments of the partners or external financing sources.
4. Subject to unlimited liability: In a partnership, each partner is personally liable for the debts, obligations, and liabilities of the business. This means that partners' personal assets can be at risk if the partnership incurs financial obligations.
5. Legal arrangement between two or more people: A partnership is formed by an agreement or contract between two or more individuals who share the profits and losses of the business.
In the given descriptions of businesses:
- Michael, who reports all income and expenses on his personal income tax return, represents a sole proprietorship.
- Tyler, as the CEO of a beverage company, is likely part of a corporation.
- Jackson, who started a business with his uncle and faced personal liability for its debts, indicates a partnership.
- Selena and Mario, who run a law firm but are not personally liable for its debts, suggest a limited liability company or limited liability partnership.
Learn more about arrangements here
brainly.com/question/27909921
#SPJ11
Question 15 Scenario 3-1 How many many blooms are on the peony plants at Bouquet Farms? In previous years, you know that each plant on average would produce 30 blooms. You are interested if your yield
Based on the information provided, the main answer is: The peony plants at Bouquet Farms produce an average of 30 blooms each.
Peony plants at Bouquet Farms have historically produced an average of 30 blooms per plant. This data suggests that, in previous years, the plants consistently yielded 30 blooms on average. However, it is important to note that this information pertains to previous years and may not necessarily reflect the current yield. Factors such as weather conditions, plant health, and farming practices can influence the number of blooms a plant produces.
Peonies are known for their lush and abundant blooms, making them popular in gardens and floral arrangements. However, the number of blooms can vary depending on various factors. Proper care and maintenance, such as regular watering, adequate sunlight, and timely fertilization, can promote healthy plant growth and maximize bloom production. Additionally, peony varieties differ in their bloom potential, with some cultivars naturally producing more flowers than others.
Peony plants typically have a bloom period that lasts for a few weeks, during which the buds gradually open to reveal their stunning flowers. It's essential to monitor the plants closely during this period to assess the number of blooms accurately. While the average of 30 blooms per plant serves as a useful benchmark based on historical data, it is advisable to observe the current plants at Bouquet Farms to determine the precise yield.
Learn more about: Peony plants
brainly.com/question/32852662
#SPJ11
10 points) suppose the quote on pounds is $1.624-31. a.) if you converted $10,000 to pounds and then back to dollars, how many dollars would you end up with? b.) suppose you could buy pounds at the bid rate and sell them at the ask rate. how many dollars would you have to transact in order to earn $1,000 on a round-trip transaction (buying pounds for dollars and then selling the pounds for dollars)?
If you converted $10,000 to pounds and then back to dollars, you would end up with $16,240. To earn $1,000 on a round-trip transaction you would have to transact $16,240.
a.) If you convert $10,000 to pounds, you would divide $10,000 by the ask rate of $1.624, which gives you approximately 6,146.79 pounds. Then, if you convert the pounds back to dollars using the bid rate of $1.623, you would multiply 6,146.79 pounds by $1.623, resulting in approximately $10,000. The slight difference in the final amount is due to rounding.
b.) To earn $1,000 on a round-trip transaction, you would need to take advantage of the bid and ask rates. Let's assume you buy pounds at the bid rate of $1.623 and sell them at the ask rate of $1.624. The difference between the bid and ask rates is $0.001. To earn $1,000, you would divide $1,000 by $0.001, giving you $1,000,000. Therefore, you would have to transact $1,000,000 in order to earn $1,000 on the round-trip transaction.
Learn more about ask rates here:
brainly.com/question/31706958
#SPJ11
leases generally contain a quiet enjoyment clause. the meaning of this clause is that: select one: a. the lessor (owner) will not disturb the lessee during the period of the lease. b. the lessee will not be evicted by a person having a superior title to the lessor. c. the tenant may quietly enjoy the property while he is in possession, provided his enjoyment does not violate the terms of the lease. d. all of these choices.
The correct answer is d. all of these choices. A quiet enjoyment clause in a lease provides the lessee with protection against disturbance from the lessor, eviction by someone with superior title, and allows for peaceful enjoyment of the property, as long as the terms of the lease are followed.
A quiet enjoyment clause in a lease generally means that all of the mentioned conditions are included.
First, it ensures that the lessor (owner) will not disturb the lessee during the lease period. This means that the lessor cannot interfere with the lessee's use and enjoyment of the property, as long as the lessee is following the terms of the lease agreement.
Second, the clause also protects the lessee from being evicted by a person who has a superior title to the lessor. This means that even if someone else claims ownership or has a legal right to the property, the lessee cannot be evicted based on that claim.
Lastly, the clause allows the tenant to quietly enjoy the property while they are in possession, as long as their enjoyment does not violate the terms of the lease agreement. This means that the lessee can use and enjoy the property peacefully, without interference, as long as they are abiding by the lease terms.
In conclusion, a quiet enjoyment clause in a lease provides the lessee with protection against disturbance from the lessor, eviction by someone with superior title, and allows for peaceful enjoyment of the property, as long as the terms of the lease are followed.
To know more about enjoyment visit;
brainly.com/question/30175292
#SPJ11
when a firm develops a drastically simplified version of a product due to lack of purchasing power in a foreign market the process is referred to as: group of answer choices forward innovation backward innovation reshoring outsourcing
The process referred to when a firm develops a drastically simplified version of a product due to lack of purchasing power in a foreign market is called "backward innovation."
In this scenario, backward innovation involves simplifying the product to make it more affordable and accessible to customers in a market with limited purchasing power. By reducing the complexity and features of the product, the firm can offer it at a lower price point, making it more appealing to consumers in that particular market.
On the other hand, reshoring and outsourcing are not directly related to the development of simplified products. Reshoring refers to bringing back production or manufacturing operations to the home country, while outsourcing involves contracting external suppliers or companies to carry out specific tasks or processes.
To know more about market visit:
https://brainly.com/question/33204230
#SPJ11
Income securities are used primarily to Defer interest income to a later date. Invest in retirement planning. Correct Answer Supplement current income. You Answered None of these. Shelter current income from taxes.
Income securities are primarily used to supplement current income.
Income securities are financial instruments that generate income for investors. They are typically fixed-income investments such as bonds, certificates of deposit (CDs), or dividend-paying stocks.The primary purpose of income securities is to provide a steady stream of income to investors. This income can be in the form of interest payments, dividends, or periodic distributions.By investing in income securities, investors can supplement their current income from other sources such as salaries or pensions. This additional income can be used to cover daily living expenses, pay bills, or save for future financial goals.While income securities can also play a role in retirement planning by providing a reliable income stream during retirement, their main focus is on supplementing current income.Deferment of interest income to a later date is not the primary purpose of income securities. While some securities may offer the option to defer interest payments, it is not the primary objective for most investors.Sheltering current income from taxes is not the primary purpose of income securities either. While certain types of income securities may offer tax advantages, such as municipal bonds that are exempt from federal taxes, the primary goal is still to supplement current income.Therefore, the correct answer is that income securities are primarily used to supplement current income.
For more such question on income
https://brainly.com/question/28390284
#SPJ8
the net outcome of either tariffs or quotas for the world economy is multiple choice 2 indeterminate, since neither the costs to consumers nor the gains to producers and government are consistent. zero, since the costs to consumers equal the gains to producers and government. negative, since the costs to consumers substantially exceed the gains to producers and government. positive, since the costs to consumers do not exceed the gains to producers and government.
The net outcome of tariffs or quotas for the world economy is negative due to the significant costs to consumers.
The net outcome of either tariffs or quotas for the world economy is negative, since the costs to consumers substantially exceed the gains to producers and government. Tariffs are taxes imposed on imported goods, while quotas restrict the quantity of goods that can be imported. Both measures are aimed at protecting domestic industries and increasing government revenue. However, they often result in higher prices for consumers due to reduced competition and limited choices. Additionally, tariffs and quotas can lead to trade disputes and retaliatory measures from other countries, disrupting global trade. Therefore, the overall impact on the world economy is negative, as the costs to consumers outweigh the benefits to producers and governments.
The net outcome of tariffs or quotas for the world economy is negative due to the significant costs to consumers.
To know more about tariffs visit:
https://brainly.com/question/22685610
#SPJ11
By how much will Y* increase, if an increase in consumer confidence causes the consumption function to change from C = 40+ 0.9Y to C = 100+ 0.9Y. Select one: a. 600 b. 60 c. 120 d. 300 Which of the following would NOT lead to an increase in equilibrium Y*? Select one: a. A downwards shift of the savings function b. An increase in investment c. An increase in the slope of the consumption function d. An upwards shift of the savings function
Therefore, option C, $120$ is not the correct answer and other options like A, B, and D would lead to an increase in equilibrium Y*
The given consumption functions are
C = 40 + 0.9Y (Initial)and
C = 100 + 0.9Y (Final)
where C denotes the consumption function, Y is the income.
The difference between the two is
[tex]$C_{final}$−$C_{initial}$=($100+0.9Y$)−($40+0.9Y$)= $60$[/tex]
This implies that Y will increase by $60$ if an increase in consumer confidence causes the consumption function to change from
[tex]$C = 40+ 0.9Y$ to $C = 100+ 0.9Y$.[/tex]
Therefore, option C, $120$ is not the correct answer and other options like A, B, and D would lead to an increase in equilibrium Y*.A downwards shift of the savings function- This would lead to an increase in the equilibrium Y*.An increase in investment-
This would lead to an increase in the equilibrium Y*.An increase in the slope of the consumption function- This would lead to an increase in the equilibrium Y*.
An upwards shift of the savings function- This would lead to a decrease in the equilibrium Y*.
To know more about increase visit;
brainly.com/question/16029306
#SPJ11
1. Change in equilibrium income (Y*) = 600. Hence, Option (A) is correct.
2. An upwards shift of the savings function will not lead to an increase in equilibrium Y*. Hence, Option (D) is correct.
1. Given
Initial consumption C = 40+ 0.9Y
New consumption C = 100+ 0.9Y
Marginal Propensity to Consume (MPC) = 0.9
Change in Autonomous consumption = 100-40 = 60
Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.9) = 1 / 0.1 = 10
Change in equilibrium income (Y*) = Change in autonomous consumption * Multiplier = 60 * 10 = 600
Thus, an increase in consumer confidence causing the change in the consumption function from C = 40 + 0.9Y to C = 100 + 0.9Y will result in an increase in equilibrium income (Y*) of 600.
2. An upwards shift of the savings function means that at each level of income, individuals and households are saving more.
This implies that they are consuming less, which reduces consumption expenditure and aggregate demand in the economy.
As a result, the total spending in the economy decreases, leading to a decrease in equilibrium income (Y*).
In other words, when the savings function shifts upwards, it dampens the overall economic activity and counters the potential increase in investment or consumption, ultimately resulting in a lower equilibrium income.
Thus, an upwards shift of the savings function, would not lead to an increase in equilibrium income (Y*).
Learn more about equilibrium income here:
https://brainly.com/question/13034122
#SPJ4
Alyssa's current multifactor productivity ratio is 1.30. a. Assuming each cake costs the same to make, the average cost to produce a cake is $ per cake. (Enter your response rounded to two decimal places.) b. If the cost of labor is $45 per hour (including benefits) and it takes 90 minutes to produce a birthday cake, 240 minutes to produce a wedding cake, and 60 minutes to produce a specialty cake, what is Alyssa's labor productivity r in dollars per hour for each type of cake? Alyssa's labor productivity ratio for birthday cakes is $ per hour. (Enter your response rounded to two decimal places.) . Alyssa's labor productivity ratio for wedding cakes is $ per hour. (Enter your response rounded to two decimal places.) Alyssa's labor productivity ratio for specialty cakes is $ per hour. (Enter your response rounded to two decimal places.) c. Based on the labor productivity ratio in dollars per hour, the cakes that Alyssa should be trying to sell more of are cakes. d. Based on the given multifactor productivity ratio of 1.30 and the determined average cost to produce a cake, the type of cake that Alyssa should definitely stop selling is cakes.
a. To find the average cost to produce a cake, we need to consider the labor cost for each type of cake.
b. To calculate Alyssa's labor productivity ratio for each type of cake, we need to divide the labor cost by the time it takes to produce each cake.
- For birthday cakes: Labor cost = $45/hour x (90 minutes/60 minutes) = $67.50
- For wedding cakes: Labor cost = $45/hour x (240 minutes/60 minutes) = $180
- For specialty cakes: Labor cost = $45/hour x (60 minutes/60 minutes) = $45
c. Based on the labor productivity ratio in dollars per hour, Alyssa should be trying to sell more of the cakes that have higher labor productivity ratios.
- Comparing the labor productivity ratios, we find that the ratio for specialty cakes ($45) is the highest, followed by birthday cakes ($67.50), and then wedding cakes ($180). Therefore, Alyssa should be trying to sell more specialty cakes.
d. Based on the given multi factor productivity ratio of 1.30 and the determined average cost to produce a cake, Alyssa should stop selling the cakes that have a lower productivity ratio than the average. Unfortunately, the question does not provide the specific productivity ratios for each cake, so it is not possible to determine which type of cake Alyssa should stop selling.
To learn more about "Average Costs" visit: https://brainly.com/question/25799822
#SPJ11
A lot of commercial real estate owners are sophisticated business people. They may know more than us. We do offer services they need since one of our primary duties is locating properties. They are always looking for new opportunities to invest. That is why commercial real estate agents need to be sharp, possess useful knowledge of the market inventory, and be resourceful. Task. Select a commercial property. It could be a shopping center, office building, or even a small mom-and-pop business such as a clothing retail or a restaurant. You need financing for leveraging this investment. Commercial loans are different from residential in that lenders want to know your business background and see a business plan. Sometimes commercial projects are developed with an equity partner, who has a lot of cash but does not involve him or herself in the operation. In this exercise, develop a business plan and present it to a fictitious lender or equity partner. A good business plan should have the following sub-plans, and I've incorporated the factors from the lectures in bold: - Acquisition plan: construction, conversion, or demolition? - Location plan: find a good location now that you know how to analyze it; factors that influence commercial location: transportation, service factor, consumer taste - Financing plan: leveraging, tax consequence, interest cost, depreciation - Operating plan: long term or short term leases, what mix of tenants if it is a shopping center/mall, anchor tenant, or office; hotel/motel need flag, hiring staff or work there, or hand over to management team. - Management plan: day to day operation, employees, accounting/bookkeeping to janitorial, training. You are a sophisticated player now. What are your roles in it? - Marketing plan: what comparative advantages do you have to attract customers? how to generate revenue, how to attract tenants/customers, ad campaign, commercials, if it is a new start up, market penetration, if existing. continue brand awareness. - Disposition plan: watch out for changes, be ready to get out if there are changes. If this is mom\&pop, at what point will you want out this investment? If it is a real estate, like a large shopping center, you may want to leave it in an LLC or partnership, and when you want to retire or withdraw from the entity.
As a commercial real estate investor, my business plan for the shopping center investment includes: Acquisition Plan: Acquire a promising shopping center with growth potential and consider necessary renovations or improvements. Location Plan: Focus on prime locations with convenient access, amenities, and alignment with consumer preferences. Financing Plan: Utilize financing options while considering tax implications and interest costs. Operating Plan: Secure diverse tenant mix with long-term and short-term leases, including anchor tenants, to attract a broad customer base. Management Plan: Oversee overall management, including staff, accounting, and maintenance. Marketing Plan: Utilize location advantages and unique offerings to attract customers through comprehensive marketing strategies. Disposition Plan: Monitor market trends, adapt to optimize positioning, evaluate performance, and determine optimal exit points.
It is an overview of the business plan for a commercial property investment in the form of a shopping center. It outlines the key sub-plans, including acquisition, location, financing, operating, management, marketing, and disposition plans. The business plan reflects the considerations and strategies involved in successfully managing and maximizing the potential of a commercial real estate investment. As a sophisticated player, the individual assumes the roles of a strategic decision-maker and overseer in the operation and management of the shopping center. The plan demonstrates an understanding of the various factors and factors related to commercial real estate investment and highlights the importance of market analysis, tenant selection, marketing, and adapting to changes in the market.
Learn more about Investors here: https://brainly.com/question/32375725.
#SPJ11
Marc and Annette are in their early 60 s and both are retired. Having worked their whole thes in publlo vervice, they each tecikre a genescun and fuiny indexed pension. They jointly own their family home and a condo in touthern Florlda. Annette owns a chalet in the laurentians that the inirinest trom ket father. The market value of these assets that they own in full is very high. Marc and Annette would like to transter these asuets to theit tno daurghess In their current sifuation, what should be their main concern? In the event that Annette passes away, the chalet would need to be sold in order to pay the eatate taxes. In the event that Mare passes away, the condo would have to be sold in order to pay the estate taxes
In their current situation, Marc and Annette's main concern should be estate planning and minimizing potential estate taxes to ensure a smooth transfer of their assets to their two daughters.
They should carefully consider the implications of transferring their valuable assets, including the family home, condo, and chalet, upon their passing. Annette's chalet may be subject to estate taxes, and if not properly planned for, it could result in the sale of the chalet to cover the tax obligations. Similarly, in the event of Marc's passing, the condo may need to be sold to settle estate taxes.
To address these concerns, Marc and Annette should consult with an estate planning professional who can help them develop a comprehensive plan to minimize estate taxes, protect their assets, and ensure a smooth transfer of wealth to their daughters while considering their overall financial goals and family dynamics.
To know more about assets:
https://brainly.com/question/14826727
#SPJ4
When in Spain, Mario spends a monthly income of €100 in the following way: • Bread - Price of bread: €2/ kilogram - How much bread Mario buys: 20 kilograms - Therefore, how much he spends on bread: €40 Wine - Price of wine: €5 / bottle - How much Mario buys: 12 bottles - How much he spends on wine: €60 Now he moves to France, where he spends €110 on bread and wine. But he spends it this way: • Bread - Price of bread: €3/ kilogram - How much bread Mario buys: 22 kilograms - Therefore, how much he spends on bread: €66 Wine - Price of wine: €4/bottle - How much Mario buys: 11 bottles - How much he spends on wine: €44 (a) When in Spain, earning €100 and facing the Spanish prices, could he have bought the French bundle (that is, 22 kilograms of bread and 11 bottles of wine)? (b) Apparently, then, which bundle does he prefer? (c) When in France, could he have bought the Spanish bundle? (d) According to the evidence of part (c), which bundle does he prefer? (e) Is Mario consistent between Spain and France?
The results for the spending of Marios monthly income of €100 is explained.
(a) When in Spain, earning €100 and facing the Spanish prices, he would have spent
40 + 60 = €100.
So, he cannot buy the French bundle costing €110.
(b) Apparently, he prefers the French bundle as he is paying €10 more in France but still buying fewer items of bread and wine.
(c) When in France, he spends €66 on bread and €44 on wine. Thus, he spends a total of €110 in France
.On the other hand, in Spain, he spent €40 on bread and €60 on wine, which is €100 in total.
Therefore, he could not have bought the Spanish bundle in France.
(d) According to the evidence of part (c), he prefers the Spanish bundle as he is paying €10 more in France but still buying fewer items of bread and wine.
(e) No, Mario is not consistent in Spain and France.
He prefers the Spanish bundle when he is in France and prefers the French bundle when he is in Spain.
Know more about the monthly income
https://brainly.com/question/30157678
#SPJ11
Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $24,000 and will have a 6-year useful life and a $6,000 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $28,000 per year. The cost of these prescriptions to the pharmacy will be about $22,000 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to (Ignore income taxes.):
Multiple Choice
2 years
1.8 years
4 years
1.2 years
The payback period for the auto closest to 1.8 years.Explanation:Payback period is the time period required to recover the cost of investment.
To find the payback period, the formula is:Payback period = Cost of investment / Annual cash inflowThere are two ways to calculate payback period. They are-Even cash flow method: In this method, the cash inflows are the same in every year. Uneven cash flow method: In this method, the cash inflows are different in different years.The given scenario is an example of an uneven cash flow. Thus, we need to calculate the cash inflow of each year using the below method.-Annual cash inflow = Gross revenue – Cost of prescriptions.
The cost of investment is $24,000The annual cash inflow of the first year is $28,000 - $22,000 = $6,000The annual cash inflow of the second year is $28,000 - $22,000 = $6,000The annual cash inflow of the third year is $28,000 - $22,000 = $6,000The annual cash inflow of the fourth year is $28,000 - $22,000 = $6,000The annual cash inflow of the fifth year is $28,000 - $22,000 = $6,000The annual cash inflow of the sixth year is $28,000 - $22,000 = $6,000Total annual cash inflow is $6,000 x 6 = $36,000Now, we can calculate the payback period using the formula-Payback period = Cost of investment / Annual cash inflow= $24,000 / $36,000= 0.67Therefore, the payback period for the auto is closest to 1.8 years.
To know more about payback period. visit
https://brainly.com/question/28304736
#SPJ11