What is the payback period of the ice cream cart

Assignment Help Finance Basics
Reference no: EM13273771

It will cost $2,800 to acquire a small ice cream cart. Cart cash flows are expected to be $2,000 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?

4.20 years
0.71 years
0.47 years
1.40 years
2.14 years

 

Reference no: EM13273771

Questions Cloud

Define what is the empirical formula of the oxide : Nitrogen and Oxygen form an extensive series of oxides of general formual NxOy; at least 7 are known. One of them is a blue solid that comes apart reversibly in the gas phase. It contains 36.84% N and the rest is Oxygen. What is the empirical form..
Determine what is the effect on ia and speed : A shunt-connected a DC motor has zero rotational losses and R A = 0. Assume that R A and R adj is constant [except in part (d)] and that is directly proportion to feild current. For VT= 200 V and P out = 2 hp.
What grade did each receive : When the term marks were made out, each of the four passed, and strange as it may seem, each received a grade that checked exactly with the ideas they had previously expressed. what grade did each receive?
Determine the natural abundance of isotope : The chemical atomic mass of hydrogen, with the two stable isotopes 1H and 2H (deuterium), is 1.00798. Use m(H1) = 1.007825 u, determine the natural abundance of 2H isotope
What is the payback period of the ice cream cart : It will cost $2,800 to acquire a small ice cream cart. Cart cash flows are expected to be $2,000 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..
Explain concerning the total ionic equation for the process : When the following two solutions are combined, a precipitate forms. CaCl2(aq) Rb3PO4(aq)Which of these is TRUE concerning the total ionic equation for the process
Find out what function in time resulted in fourier series : Use Matlab to find out what function in time x(t) resulted in the Fourier Series Coefficients Xn = j/(2*p*n) for n?0 and X0=0. You can accomplish this by synthesizing the signal from sufficient frequency components.
Explain the concept of a real option : Finally, explain the concept of a real option and how this can help Joshua and Jim as they continue with their business.
What is his average vertical velocity : The altitude of this luge track is 2237m. The altitude at the end is 2205 m. If a luger takes 48 seconds to complete a run, what is his average vertical velocity

Reviews

Write a Review

Finance Basics Questions & Answers

  Investment and portfolio analysis assignment

Investment and Portfolio Analysis Assignments

  How does the company compare with the average capital

What advantages, if any, can the bank gain by purchasing the finance company and using it to own productive assets, such as computers, and leasing such assets to the parent company, the bank?

  What role does a counter-cyclical play

Diagram the business cycle and the effects on individual industries. Why is an index measuring Christmas sales so important? Is the business cycle controllable? What role does a counter-cyclical play?

  What is martins new weighted average cost of capital

Instead, assume that the restructuring is completed and Martin is now 20% debt and 80% common equity. But the after tax cost of debt is 9% and the cost of common equity is 13.5%. What is Martin's new weighted average cost of capital?

  Explain how the degree of operating and financial leverage

Explain how the degree of operating and financial leverage can change the profitability of the firm when sales levels change significantly. Use examples and explain your answers.

  What is the required rate of return on steve services stock

Steve Services stock has a beta of 1.4. The risk-free rate is 6.7%, and the expected return on the market is 8%. What is the required rate of return on Steve's Services stock.

  Questions related to bond basics

Multiple choice questions using bond basics - Which of the following bonds is secured by a lien on real property?

  What is the intrinsic value of deployment specialists stock

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 3% thereafter. If the required return for Deployment Specialists is 9.0%, what is the intrinsic value of Deployment Specialists ..

  What is the 90-day forward rate

Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 3% in the United States and a nominal annual rate of 35% in the United Kingdom. In the spot market, 1 pound $1.56.

  What is the firm before-tax cost of debt

The Green Balloon issued 20-year zero coupon bonds 4 years ago. Currently, these bonds are selling at 32.8 percent of face value of $1,000. The tax rate is 35 percent.

  Objective type questions on bond valuation

Objective type questions on bond valuation and An increase in the level of wealth in the economy

  Calculate daily expenditure and firm annual savings

XieCorp is analyzing the performance of its cash management. On average, the company holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in fifteen days.

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