A project has a profitability index of 0.32 and the present…
A project has a profitability index of 0.32 and the present value of the net cash inflows generated by the project is $19,000. What is the required initial investment for this project? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
Read DetailsAcme Company is a wholesaler that makes all inventory sales…
Acme Company is a wholesaler that makes all inventory sales and inventory purchases on account. All of Acme’s accounts payable relate to inventory purchases. During the current month, Acme collects $135,000 of cash from its customers and its accounts receivable balance increases by $5,000. Acme also pays $109,000 of cash to its suppliers of inventory and its accounts payable balance increases by $7,500. Acme’s merchandise inventory balance does not increase or decrease during the month. What is Acme’s gross margin? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
Read DetailsAcme Company purchases new equipment that costs $160,000 and…
Acme Company purchases new equipment that costs $160,000 and has a useful life of 10 years and a salvage value of $10,000. Acme sells the old equipment that is being replaced for $20,000. The payback period for the initial investment in the new equipment is 4 years. What is the simple rate of return on the investment in the new equipment? Round to one decimal place.
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