Answer:
$14,850
Explanation:
Depreciable amount = $158,000 - $5,000 = $153,000
Annual depreciation = $38,250
Annual net income = $53,100 - $38,250 = $14,850.
Therefore, the annual net income amount used to calculate the accounting rate of return is $14,850
Answer:
4%
Explanation:
Simple interest is calculated using the formula
I = p x r x t
in this case, the interest I is the total amount-principal amount
I = $50,000- $46,875
=$3,125
$3,125 = 46,875 x r x 1 year 8 months
$3,125 =46,875 x r/100 x 1.67
3125=78,281.25 x r/100
$3125 x 100 = 78,281.25 x r
$312500= 78,281.25
r=312500/78,281.25
r=3.992
r=4%
Option A is the correct answer
Answer:
Option D. Entry into the European market by Home Depot.
Explanation:
The reason is that the strategic actions are long term actions and are market based moves which bounds the organizational resources for implementation and are also very difficult to reverse.
So here use of coupons, fare increases and two for one offers are easily reversible, requires fewer organizations resources for implementation and short term decisions which means these are tactical actions.
Whereas the decision to enter european market by Home Depot is long term decision, bounds organization resources for implementation and is very difficult to implement or reverse the actions once taken, so it is strategical action of Home Depot.
Answer:
Using the flow-equity method of valuation the borrowed is $67600,option B.
Explanation:
In order to determine the amount borrowed in executing the project, we make use of the below formula which shows that we are working backwards.
Amount borrowed=present value of cash inflows-levered cash flows
present value of cash inflows=net present value+initial investment
present value of cash inflows=$157000+$640000
present value of cash inflows=$797000
levered cash flows=$729400
Amount borrowed=$797000-$729400
amount borrowed =$67600
