Payback period using the accumulation method
1) Compute the average annual cash inflows.
2) Compute the payback period using the accumulation method.
Year 2013 2014 2015 2016 2017
Incremental revenue 6,000 2,000 4,000 2,000 1,000
Cost of new machine 12,000
Expected delivery within 24 Hours
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1) Compute the average annual cash inflows. 2) Compute the payback period using the accumulation method.
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Barstock Manufacturing incurs costs of $7.50 ($4.50 variable and $3 fixed) in making a sub-assembly part of its finished product. A supplier offers to make 10,000 of the assembly part at $5 per unit. If the order is accepted, Barstock will save al
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An upward or downward movement along a given demand curve or involves an outward or inward shift in the relevant demand curve for housing. Explain your answers.
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