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otez555 [7]
4 years ago
13

Walden Industries is considering investing in productionminusmanagement software that costs $ 610 comma 000​, has $ 64 comma 000

residual​ value, and leads to cost savings of $ 1 comma 560 comma 000 per year over its fiveminusyear life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.
Business
1 answer:
Hatshy [7]4 years ago
4 0

Answer:

Average investment will be $625000

Explanation:

We have given cost = $610000

And residual value = $640000

We have to calculate the average investment

We know that average investment is given by

Average investment =\frac{cost+residual\ value}{2}=\frac{610000+640000}{2}=$625000

So the average investment will be $625000 which is used for calculating the accounting rate of return

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You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock
lukranit [14]

Answer:

Beta= 1.1065

Explanation:

Giving the following formula:

Proportions:

35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T.

Betas:

0.83, 1.21, 1.22, and 1.39,

<u>To calculate the beta of the portfolio, we need to use the following formula:</u>

<u></u>

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

Beta= (0.35*0.83) + (0.25*1.21) + (0.25*1.22) + (1.15*1.39)

Beta= 1.1065

7 0
3 years ago
explain why an economy in which airlines charge different passangers different prices for the same flight ticket will not achiev
Anarel [89]

Answer:

Price discrimination is when a producer charges different prices, to different consumers for the same good or service. Therefore, an airline that charges different prices to different passengers for the same flight is practicing a third degree price discrimination because consumers are charged different prices based on their different demand elasticities.

Economic efficiency is when scarce resources are used in the most efficient way to produce maximum output; it consists of productive efficiency and allocative efficiency. For price discrimination to be possible, the firm must have a certain degree of monopoly power; that is, the firm must be a price maker. Monopolies typically fit into this description as they discriminate by charging  consumers with an inelastic demand higher prices; this reults in allocative ineffciency because price is greater than the Marginal Cost (P>MC).

On the other hand price discrimination could increase efficiency; price discrimination aims to convert consumer surplus to producer surplus, thereby increasing the profit of the firm. An increase in profits could be dedicated to investement in research and development; this could see such a firm achieve dynamic efficiency (long-run productive efficiency). Secondly, due to the increased profits and the potential for more profits, output is increased and price moves closer to the MC (Closer to allocative efficiency). In addition, an increase output  would mean that the firm is making use of its spare/idle capacity in production, moving output towards optimum. From another perspective, a firm can reap economies of scale through price discrimination; this is because price discrimination leads to an increase in output and a reduction in average cost.

Explanation:

5 0
3 years ago
The summary of important trends in retailing are​
ankoles [38]

Answer:

1 Investment in omni channel retail strategies

2 provide a personalized retail experience

3 Attend to the growing culture of immediacy

4 Expand into emerging markets and create a new channel

7 0
4 years ago
The total amount of cash and checks needs to be documented at the bottom of the deposit slip. True False
Vedmedyk [2.9K]
I think it is False! Because it doesn't have a total amount of cash and checks to be documented at the bottom of the deposit slip.

Hope it helped!

-Charlie
4 0
3 years ago
The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $29,264 and credits are $63,411. Wha
GenaCL600 [577]

Answer:

Net income of $34,147

Explanation:

Given that

the debits are $29,264

And, the credits are $63,411

We need to find out from the above information that what means to the accountant

As we know that the expenses comes in debit side and the revenues comes in credit side

So here revenue is more than the expenses

SO, there is the net income of

= $63,411 - $29,264

= $34,147

4 0
3 years ago
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