Which project has the better payback period

Assignment Help Financial Accounting
Reference no: EM131216754

Which project has the better payback period? Project A requires a $25,000 investment and provides $5,000 per year for 6 years; Project B requires an $8,000 project and provides $4,000 per year for 2 years. (Show your calculations.) Explain the strengths and weaknesses of this approach.

Reference no: EM131216754

Questions Cloud

Effective for staples to appeal to medium-sized businesses : It is crazy to see that Staples is on the decline because it has been one of those companies that has always been around but it makes sense that Amazon and Walmart are the main competitors because they continue to innovate their model. What has stapl..
The totality of computer systems in firm is called : Which of the following is least likely to be a member of a study team? Which of these is most likely to be the first task in a systems study? An intensive investigation of a company's present information system in order to discover systems weaknesses..
Ordinary income explanations of the respective outcomes : Case study 2: ordinary income Explanations of the respective outcomes reached by the courts in the following cases which all involving sales of land I. Californian Copper Syndicate Ltd v Harris (Surveyor of Taxes) (1904) 5 TC 159 II. Scottish Austral..
Overall net operating income : Fabio Corporation is considering eliminating a department that has a contribution margin of $31,000 and $62,000 in fixed costs. Of the fixed costs, $15,500 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating ..
Which project has the better payback period : Which project has the better payback period? Project A requires a $25,000 investment and provides $5,000 per year for 6 years; Project B requires an $8,000 project and provides $4,000 per year for 2 years. (Show your calculations.) Explain the streng..
Prepare statement of partnership liquidation for the period : Statement of partnership liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $55,000, $45,000, and $20,000, respectively. Cash, noncash assets, and liabili..
Prepare statement of partnership equity for the year ended : Net income of $150,000 was earned in 2016. In addition, Dennis overton received a salary of $40,000 for the year. The three partners agree to an income sharing ratio equal to their capital balances after admitting Campbell. The partners withdrawals a..
Would outsourcing the payroll function increase : Would outsourcing the payroll function increase or decrease Duck Associates' operating income? Tan believes that outsourcing payroll would simplify her job, but she does not like the prospect of having to lay off Stock, who has become a close persona..
Equity appear on publicly traded company financial statement : How would the owner's equity appear on a publicly traded company's financial statements? I work for a publicly traded company, so that is our primary source of investments. I know these financial statements are important for sole proprietorship, but ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  At the year-end-the book value of the mine

Early in the year, Amazon purchased River mine for $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are done. During that year, 115,000 tons of ore were removed. At ..

  Colicchio corporation acquired two inventory

Colicchio Corporation acquired two inventory items at a lump-sum cost of $60,000. The acquisition included 3,000 units of knife X001, and 3,000 units of knife X002. X001 normally sells for $20 per unit, and X002 for $10 per unit.

  Identify performance gaps between the bookstore results

Identify performance gaps between the Bookstore results and the AUCC averages and consider possible corrective actions and what objectives and related performance measures might she consider? Provide specific answers.

  Prepare an income statement for the year 2014

Prepare an income statement for the year 2014 starting with income from continuing operations before taxes. - Compute earnings per share as it should be shown on the face of the income statement.

  The purchase price of a loader including tires

The purchase price of a loader including tires, sales tax, and all other costs associated with its purchase is $210,000. The life of the loader is 9years, at which time it will have an estimated salvage value of $23,000. The replacement cost of the t..

  Considering the acquisition of new machinery

Porschia is considering the acquisition of new machinery that will produce uniform benefits over the next 9 years. The following information is available:

  The company can purchase the site

The company can purchase the site, construct the building, and purchase all store fixtures. The cost would be $1,861,700. An immediate down payment of $412,400 is required, and the remaining $1,449,300 would be paid off over 5 years at $361,500 per y..

  Calculate the flexed budget and the key variances

Calculate the flexed budget and the key variances between budgeted and actual results and reconcile the original budget and present the relationship between the budgeted and the actual profit for the month November

  Property-plant and equipment

P & P Products is relocating their Human Resources department to an unused space that is closer to the main administration building. The 4,000 square foot space is empty and has not been used in several years. Jane, the VP of Personnel, is overseeing..

  Stock constituting-what is gain or loss

Lauren owns 3000 shares of Fenmore stock constituting 30% of its single class of stock. Lauren had acquired 1500 shares 5 years ago for $20,000, 1000 shares 3 years ago for $10,000, and 500 shares 1 year ago for $30,000. Fenmore completely liquidated..

  What amount of interest should be capitalized as of october

Interest earned on the unexpended portion of the loan amounted to $800,000 for the year. What amount of interest should be capitalized as of October 31, 2014?

  Prepare a memorandum in january 2005 for circulation

Calculate the amount that will be reflected on the group income statement of Winter Ltd for the 2004 financial year end for equity accounting of associates. Comparative figures are not required. Show all workings.

Free Assignment Quote

Assured A++ Grade

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

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