Nolan Company Would Like to Open an Office for Five

question 69

Essay

Nolan Company would like to open an office for five years in Southern California.The initial investment required to purchase an office building is $1,500,000,and Nolan needs $400,000 in working capital for the new office.Working capital will be released back to the company at the end of five years.The company expects to remodel the office at the end of 2 years at a cost of $180,000.The company only accepts projects that have a payback period of less than three years.Annual net cash receipts from daily operations (cash receipts minus cash payments)are expected to be as follows:
$\begin{array}{lr}\text { Year 1: } & \$ 720,000 \\\text { Year 2: } & \$ 760,000 \\\text { Year 3: } & \$ 1,000,000 \\\text { Year 4: } & \$ 1,190,000 \\\text { Year 5: } & \$ 1,220,000\end{array}$
(1)Calculate the payback period for this project rounded to the nearest month.Show your work.
(2)Should the company accept this proposal? Explain.

Understand the different types and effects of bullying in middle childhood, including the role of empathy.

Learn about the factors influencing popularity and peer rejection in middle childhood.

Acknowledge the common imperatives among 6- to 11-year-old children in moral and social situations.

Understand Geert Hofstede's cultural dimensions and their implications on international business practices.

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Definitions:

Extra-Local Social Relations

Interactions and connections that occur outside of one's immediate geographic area, facilitated by technology, travel, or shared interests.

Societal Relations

The interactions and connections among individuals and groups within a society, including their social roles, statuses, and networks.

Smith's Use

Likely refers to a specific framework, method, or application attributed to a person with the surname Smith, without further context this cannot be accurately defined.

Orientalism

A critical concept that discusses Western depictions and stereotyping of Eastern cultures and peoples as exotic, backward, or uncivilized.