Munoz 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 $15,660,000; it will enable the company to increase its annual cash inflow by $5,800,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $34,400,000; it will enable the company to increase annual cash flow by $8,600,000 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 Munoz should accept if the decision is based on the payback approach. (Round your answers to 1 decimal place.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Munoz Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $8,500 face value and 7% interest.
Answers (1)
White, Sands, and Luke has the following capital balances and profit and loss ratios: $60,000 (30%), $100,000 (20%) and $200,000 (50%). The partnership has received a predistribution plan. How would $200,000 be distributed?
Answers (1)
In the present era, is the concept of entrepreneurship product centric or idea-centric?
Answers (1)
Marge is told by a jeweler that a particular diamond priced at $10,000 in which she is interested cannot be obtained anywhere else for under $15,000. later that day, she finds a diamond of comparable quality priced at $8,000 at another jewelry store.
Answers (1)
The predetermined overhead rate for Weed-B-Gone is $8, comprised of a variable overhead rate of $5 and a fixed rate of $3.
Answers (1)
New Questions in Business
An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes. Specifically, they want to know what proportion of them plan to use one of their new hubs in the next 10 months.
Answers (1)
Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
Answers (1)
Why is it important to know the interest rate on your credit card? a) The higher the interest rate, the more money you will be paying back b) The higher the interest rate, the less money you will be paying back c) The lower the interest rate, the
Answers (2)
It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only all the firms being compared have the same proportion of fixed assets to total assets. a) trueb) false
Answers (1)
Which of the following actions differentiates an entrepreneur from other small business owners?
Answers (1)