It will cost $5,000 to acquire a small ice cream cart. Cart sales are expected to be $1,800 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart

Answer:

"1.64 years" is the appropriate solution.

Explanation:

Given:

After 1 year,

Received amount will be:

= $1,800

Now,

After 1 year,

Remaining amount will be:

= [tex]5000-1800[/tex]

= [tex]3200[/tex] ($)

In next year,

The required time to recover $3,200 will be:

= [tex]\frac{3200}{5000}[/tex]

= [tex]0.64[/tex]

hence,

The total payback period will be:

= [tex]1+0.64[/tex]

= [tex]1.64 \ years[/tex]

Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a required rate of return equal to 8%. Compute the current price of a share of the preferred stock.
Round to the second decimal place.

How should you ideally start a negotiation discussion?
A.
displaying how sharp and aggressive you can be in negotiations
B.
being unbiased and open-minded
C.
revealing your interest in the product
D.
revealing your budget and the highest price you can pay

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b. $14,200.
c. $210,200.
d. $282,000.
e. $112,200.

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why is price discrimination not possible under perfect market conditions​

) Jack asked Jill to marry​ him, and she has accepted under one​ condition: Jack must buy her a new ​$ ​Rolls-Royce Phantom. Jack currently has ​$ that he may invest. He has found a mutual fund with an expected annual return of ​% in which he will place the money. How long will it take Jack to win​ Jill's hand in​ marriage? Ignore taxes.

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The division of labor is another word for Group of answer choices specialization. taxes. expanding markets. efficiency.g

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Prepare journal entries for each type of manufacturing cost.

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. a. What is the current stock price

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viết lý do chọn đề tài hay về chiến lược xúc tiến của công ty grab

If Jackson Ski Company issues common stock, and uses the proceeds to purchase fixed assets such as equipment: cash flow from financing would increase and cash flow from investing would decrease. cash flow from financing would decrease and cash flow from investing would increase. both cash flow from operations and cash flow from financing would increase.

A firm has expected EBIT of $910, debt with a face and market value of $2,000 paying an 8.5% annual coupon, and an unlevered cost of capital of 12%. If the tax rate is 21%, what is the value of the equity

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a. $2.92.
b. $7.27.
c. $1.48.
d. $2.03.

Projected free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations. True False

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The net income reported on the income statement for the current year was $93,700. Depreciation recorded on store equipment for the year amounted to $31,200. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year Beginning of Year
Cash $24,100 $19,700
Accounts receivable (net) 65,000 56,000
Inventories 47,200 50,000
Prepaid expenses 3,250 8,000
Accounts payable (merchandise creditors) 23,400 17,200
Wages payable 5,300 6,400
a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (partial)
Cash flows from operating activities:
Net income $
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation
Changes in current operating assets and liabilities:
Increase in accounts receivable
Decrease in inventories
Decrease in prepaid expenses
Increase in accounts payable
Decrease in wages payable
Net cash flow from operating activities $
Feedback
Compute the increases and decreases in the current asset/liability accounts over the period. Determine what affect these changes would have on cash.
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