Long-term investment decision, payback method bill williams has the opportunity to invest in project a that costs $9,000 today and promises to pay annual end-of- year payments of $2,200, $2,500, $2,500, $2,000, and $1,800 over the next 5 years. or, bill can invest $9,000 in project b that promises to pay annual end-of-year pay- ments of $1,500, $1,500, $1,500, $3,500, and $4,000 over the next 5 years. a. how long will it take for bill to recoup his initial investment in project a? b. how long will it take for bill to recoup his initial investment in project b? c. using the payback period, which project should bill choose? d. do you see any problems with his choice?

Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months. fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business. identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats. implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the

You would like to compare your firm's cost structure to that of your competitors. however, your competitors are much larger in size than your firm. which one of these would best enable you to compare costs across your industry? common-size income statement. pro forma balance sheet. statement of cash flows. common-size balance sheet