Business, 23.04.2020 23:34, yrkfred1440

North Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $12,000,000; it will enable the company to increase its annual cash inflow by $4,000,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $24,000,000; it will enable the company to increase annual cash flow by $6,000,000 per year. This plane has an eight-year useful life and a zero salvage value. Required:

Determine the payback period for each investment alternative and identify the alternative North should accept if the decision is based on the payback approach.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:50, kennrecklezz

Which of the following best explains why treasury bonds have an effect on the size of the money supply? a. the amount of treasury bonds in circulation affects both unemployment and inflation. b. the government can spend more money and charge lower taxes by using treasury bonds. c. the federal reserve bank can buy and sell these bonds to raise or lower bank deposits. d. the interest paid on treasury bonds influences the interest rates charged by private banks. 2b2t

Answers: 1

continue

Business, 21.06.2019 20:00, tiannaetzel

During 2017, sheridan company expected job no. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. sheridan applied overhead based on direct labor cost. actual production required an overhead cost of $260000, $510000 in materials used, and $150000 in labor. all of the goods were completed. what amount was transferred to finished goods?

Answers: 1

continue

Business, 22.06.2019 14:00, tamariarodrigiez

How many months does the federal budget usually take to prepare

Answers: 1

continue

Business, 22.06.2019 17:10, mikailah0988

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

continue

Do you know the correct answer?

North Airline Company is considering expanding its territory. The company has the opportunity to pur...