Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rego and associates plans to invest $1,200,000 in

Rego and Associates plans to invest $1,200,000 in modernizing their call centers. They...

90.2K

Verified Solution

Question

Accounting

image

Rego and Associates plans to invest $1,200,000 in modernizing their call centers. They expect productivity to increase and generate 8,000 more billable hours annually. The current bill rate is $50 per hour. Rego and Associates does not include depreciation or taxes when computing payback or accounting rate of return. The effect of the investment on productivity will last for over five years, although the effects become harder to predict for beyond five years. The company uses a discount factor of 10% on its capital projects. Required: a. What is the payback period on this project? years b. What is the modified payback period on this project? (Use Table 1 from Appendix B, and round your final answer to 2 decimal places, e.g. 5.25 years.) years c. What is the project's accounting rate of return? Ignore taxes. (Round your answer to two decimal places, e.g. 58.74%.) olo

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Thoroughly describe independent and dependent variables in complete sentences. 2. Thoroughly describe why you think they...

Statistics
Q

design a vapor compression refrigeration system that will maintain the refrigerated space at -15c while operating...

Mechanical Engineering
Q

Write a letter to GE, American Airlines, Microsoft, Comcast, Verizon, or another company to complain about...

General Management
Q

Solve for w.-30w-25=9wIf there is more than one solution, separate them with commas.If there is...

Basic Math
Q

Select the correct answer from each drop down menu Of the 16 cards drawn from...

Basic Math
Q

Javier volunteers in community events each month He does not do more than five events...

Statistics
Q

For a product, manufacturing costs have been estimated at $ 300,000 in fixed costs per...

Accounting
Q

On October 1, Vosta View Company rented warehouse...

Accounting
Q

Inglesias Company just completed job number 12. See details below. Direct labor cost: $840 Direct...

Accounting
Q

pleae help solvng this in excel and explain each step thus indirect method cash flow...

Accounting
Q

According to the Seton Hall Career Center (http://www.shu.edu/offices/career-center/highlights.cfm), the 2016 graduates of the Stillman School...

Finance
Q

Present Value of $1 nA 5.0% 60% 7.06 80% 90% 10.0% 11.0% 12. .95238 0.94340...

Finance