Company C generated income from recycling the paper and cardboard. The income averaged $10,000 per month for the past 5 years. What is the income stream’s equivalent worth now at an interest rate of 12% compounded monthly? Draw a cash flow diagram and do a manual solution.

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A: Formula to calculate payback period :Payback period = Inital investment / Annual net cash flows

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Q: Construct the cash flow diagram using an interest rate of 12% per year.

A: Cash flow diagram is a representation of cash inflows and cash outflows over a specified period of…

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A: Cash payback period = Initial investment / annual net cash flows

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A: NPV is the present value of future cashflows

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A: = Initial InvestmentAnnual cash flows=$312,000$40,000 = 7.8 Years

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Q: Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the…

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A: Equivalent annual cash flow=$200,000-$20,000(A/G, 12%, 8)= 200,000 - 20,000 (2.9131)= $142,738

Q: A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from…

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A:

Q: Primus Corp. management is planning to convert an existing warehouse into a new plant that will…

A: The formula to compute payback period as follows:

Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…

A: Payback period = Initial cost / annual cashflow

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Q: Water damage from a major flood in a Midwestern city resulted in damages estimated at $200,000 in…

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A: Note: This post has two distinct questions. The first has been answered below.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.