Payback period = Payback year + [ cumulative cash flow of the year / cash flow o
ID: 373804 • Letter: P
Question
Payback period = Payback year + [ cumulative cash flow of the year / cash flow of the succeeding year ]
Payback period = 2 + [ 150 / 300 ]
Payback period = 2.5 years
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7) The correct choice is : Reducing travel
Explanation : - In operating a warehouse, the travel time consists of moving the item from the storage area to the shipping area and finally dispatching to its destination . The travel time has to be minimum so that items are shipped faster and reducing travel time could pose a challenge due to bottlenecks in the warehouse such as incorrect layout .
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8) The correct choice is : consider physical layout of shelves to identify the most popular items
Explanation : - Global path planning technique can be applied when a complete knowledge of the environment is acquired. The Global path planning technique does not place importance on the physical layout of shelves to identify most popular items.
Year Cash flows cumulative cash flows 0 -600 -600 1 250 -350 2 200 -150 3 300 150Explanation / Answer
Susmel Inc. is considering a project that has the following cash fl roject's payback period? Initial Outlay = $600 Cash Flows: Year 1 = $250 Year 2 = $200 Year 3 = $300
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