Annie's Homemade is considering buying an ice cream truck at the beginning of April for $46,500. The ice cream truck's estimatedmonthly net cash inflows are as follows:AprilMayJuneJulyAugustSeptemberOctoberNovember$ 2,000$ 6,000$ 8,000The payback period is$ 12,000$ 14,000$ 9,000$ 7,000$ 1,000Required:1. What is the ice cream truck's payback period in months?Note: Round your answer to 1 decimal place.months

The payback period is the time it takes for an investment to recoup its initial cost through…

Answered: Annie's Homemade is considering buying…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PB: A bookstore is planning to purchase an automated inventory/remote marketing system, which includes...

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You have a balance of $5,000 on your credit card, which charges an interest rate of 1.3% per month. Looking at your budget, you figure you can make the following payments. Will they be enough to pay off your credit card? Month 1 3 4 7 8 Рayment $485 $550 $615 $680 $745 $810 $875 $940 ..... (Select from the drop-down menus.) The present value of your payments is the amount of the loan, so you be able to pay off the loan.
A bookstore is planning to purchase an automated inventory/remote marketing system, which includes an upgrade to a more sophisticated cash register system. The package has an initial investment cost of $360,000. It is expected to generate $144,000 of annual cash flows, reduce costs and provide incremental cash revenues of $326,000, and incur incremental cash expenses of $200,000 annually. What is the payback period and accounting rate of return (ARR)?
With a goal of purchasing one of the coveted trips to space offered by Pharoah, you deposit $53,000 in an account today that earns 11% compounded annually. You estimate the price tag for a trip to space to be $226,000. Using the NPER function in Excel or a financial calculator, determine how long it will take you to accumulate enough money to purchase a ticket. (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 15.25.) Number of periods 2 years
Pool-N-Patio World needs to borrow $55,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 7.75% interest. (Round your answers to the nearest cent.) (a) Find the size of the monthly bank payment.$ (b) Prepare an amortization schedule for all four months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment BalanceDue 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $
Pool-N-Patio World needs to borrow $50,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 73% interest. (Round your answers to the nearest 4 cent.) (a) Find the size of the monthly bank payment. Interest Portion Total Payment Balance Due (b) Prepare an amortization schedule for all four months of the loan. Principal Portion A A A Payment Number 0 1 2 3 4 A $ A LA +A $ A A A A A $ +A $ +A
With cash flow diagram
Carmen’s Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $ 9,000 April $ 9,000 February 3,000 May 10,000 March 4,000 June 5,000 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January 9.0% April 16.0% February 10.0% May 12.0% March 13.0% June 12.0% a. Compute total dollar interest payments for the six months. Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six months? Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. b-2. If long-term financing at 12 percent had been utilized throughout the six months, would the total-dollar interest payments be larger or…
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How much will Mollys monthly payment be? Remember to divide the amount borrowing by the number of months
How much will Molly’s monthly payment be?
A student is buying a new car for$37,000. The sales tax is6%. Title, license, and registration fee is$1250to be paid in cash. The dealer offers95%financing for 48 months at a rate of9%per year compounded monthly. Use both, the tables, and a spreadsheet to calculate each answer.(a) How much cash is paid when the car is purchased? b) How much is the monthly payment?

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