A company with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to reduce operating costs by $15,000 each year. These reductions in cost occur evenly throughout the year. The payback period for this machine in years is closest to (Ignore income taxes.):
A. 0.25 years
B. 8.3 years
C. 33.3 years
D. 4 years
Answer: D
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The time period variable is based on the time value of money.
Answer the following statement true (T) or false (F)
Cushman Company had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals:
A. $800,000. B. $150,000. C. $350,000. D. $450,000. E. $200,000.
A(n) ________ forecast typically encompass a period longer than one year
Fill in the blank with correct word.
You put 20% down on a home with a purchase price of $150,000, or $30,000. The remaining balance will be $120,000. A bank will loan you this remaining balance at 4.375% APR
You will make monthly payments with a 20-year payment schedule. What is the monthly annuity payment under this schedule? A) $751.11 B) $830.53 C) $910.12 D) $5,250.18