Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.): Sales $500,000Less cash variable expenses 200,000Contribution margin 300,000Less fixed expenses: Fixed cash expenses$150,000 Depreciation expenses 45,000 195,000Net operating income $105,000The company's required rate of return is 12%. The payback period for this project is closest to:
A. 4.28 years
B. 9 years
C. 2 years
D. 3 years
Answer: D
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The crime of bribery occurs when the bribe is offered even if it is not accepted.
Answer the following statement true (T) or false (F)
What is the Internal Rate of Return (IRR) for the cash flows provided in the table below?
Note: The negative cash flow for year 0 is the initial investment for the project. The required rate of return is 8%. Year Cash Flow 0 -$100,000 1 $45,000 2 $45,000 3 $45,000 A) 8.00% B) 9.70% C) 12.41% D) 16.65%
Wrench Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study:Wrench CorporationCustomer Support DepartmentData InputsResource Data: Number of employees 10 Average salary per employee$35,100 Weeks of employment per year 50 Minutes available per week (40 hours × 60 minutes) 2,400 Practical capacity percentage 75%?Activity Data:Receiving CallsResolving IssuesSettling DisputesMinutes per unit of the activity122838?Cost Object Data:All CustomersNumber of calls routed28,620Number of issues resolved17,000Number of disputes settled1,140?On the Capacity Analysis report in time-driven activity-based costing, the "potential adjustment in the number of employees"
would be closest to: A. 1.00 employees B. 2.00 employees C. 0.00 employees D. (1.00) employees
The innocent $6.00 Starbucks™ coffee when purchased just twice a week adds up to over $624 a year. Buy one every week day and how much will it cost you in a year?
A) 1,000 B) 15,600 C) 1,560 D) 848 E) 999