Answer:
36.26%
Explanation:
Simple rate of return:
return/investment
<u>return:</u>
In this case, it will be the cost saving for the new machine: 161,000
<u>investment</u>
We will decrease the investment by the recovery from the old machine.
468,000 new machine - 24,000 salvage value of new = 444,000
<u>Then, proceed to calculate:</u>
161,000/444,000 = 0.3612 = 36.26%
Consideration:
Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.
Answer: 38.77%
Explanation: the IRR is a discount rate that equates the present value of after tax cash flow to the capital amount invested.
Using the financial calculator:
Cash flow for year 0 = -7.99
Cash flow for year 1 = 4.95
Cash flow for year 2= 4.95
Cash flow for year 3= 4.95
IRR = 38.77%
I hope my answer helps.
Answer: C. $250
Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.
Labour cost per day of hiring two workers = $80 x 2 = $160
Total cost per day when three
workers are hires. This includes both the fixed cost and labour cost
Total Cost = fixed cost + labor cost
= $250 + $80 x 3
= $490.
quantity because really good weather would help more crop grow
Answer:
True
Explanation:
Because the income statement shows only the cost related to the period and sales which is in accordance to the matching concept which says that the expenses and sales recorded must be for the period which it relates. This means if we are making Income statement then we can not include the expenses of previous year in current year income statement.
In simple words, income statement will assesses the profitability of the company and profit is equal to the difference of the total sales and total expenses in the year. The statement is true.