Acompany with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to reduce operating costs by $15,000 each year. these reductions in cost occur evenly throughout the year. the payback period for this machine in years is closest to (ignore income taxes.):

Payback = 4 years

Explanation:

If a project has equal annual cash-flows, the payback period can be  calculated using the formula:

The reduction in operating costs resulting from the purchase of the machine is treated as cash inflows for capital investment decisions. As such, annual cash inflows to be used in the formula above =$15,000 each year.

It will take the company 4 years to recover the initial investment.

answer: qué lástima, pero no podré ir.

explanation: the expression "qué lástima" means "what a pity" and indicates disgust, because she would like to go but she can't go.

​

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.