1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
exis [7]
3 years ago
14

Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $284,0

00. A new salon will normally generate annual revenues of $60,490, with annual expenses (including depreciation) of $40,800. At the end of 15 years the salon will have a salvage value of $74,000 Calculate the annual rate of return on the project.
Business
1 answer:
Anastaziya [24]3 years ago
7 0

Answer:

11%

Explanation:

The computation of the annual rate of return is shown below:

Annual rate of return = Average annual income ÷average investment

where,

Average investment = (Initial investment + Salvage value) ÷ 2

= ($284,000 + $74,000) ÷ 2

= $179,000

And,

Average annual income is

= $60,490 - $40,800

= $19,690

So, the annual rate of return is

= $19,690 ÷ $179,000

= 11%

We simply applied the above formula

You might be interested in
List three methods of searching the major tax service databases. A. ​Keyword, citation, or index B. ​Author, groupings, or conte
brilliants [131]

Answer:

The correct answer is A.  ​Keyword, citation, or index

Explanation:

By definition, a keyword is an informational word used in an information retrieval system to indicate the content of a document with the expectation of a matching search result.

Citations are references of other authors to give credit for their ideas in the document that is prepared. Citations are used to reinforce ideas, results and data, to give points of view, examples, to deepen or amplify the arguments of the work to be elaborated.

An index lists the terms and topics covered in a document, as well as the pages on which they appear. To create an index, index entries are marked by specifying the name of the main entry and cross reference in the document, and then the index is generated.

4 0
4 years ago
Carl sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. both ha
Ganezh [65]

B.calculate the simple discount note proceeds. simple discount note proceeds

3 0
3 years ago
Suppose all the producers sell toasters through Wal-Mart, and WalMart lets producers choose from 2 options. With Option A, a pro
Marta_Voda [28]

Answer:

see explaination

Explanation:

1. A low-quality producer will not provide any warranty, because he knows there will be more warranty claims.

He will choose option B.

Example:

Option B:

Toaster sell 100

Price $10

Sales = $1000

Profit = $100 (let's say it costs him $9 to make it).

Toaster sell 35 (as 5 times high price).

Price $49

Sales = $1725

Warranty Expense (let's say, due to multiple times claims) = $1500

Profit = -$90 (let's say it costs him $9 to make it).

2. A high-quality producer will provide any warranty because he knows there will be very very few warranty claims.

He will choose option B.

3. Yes, the act of offering free warranty will go a long way in conveying a positive signal to customers that the brand is providing quality product & it trusts its product.

3 0
3 years ago
When firms exit a market, the _________, causing individual firms’ profits to _________.
Tpy6a [65]

Answer:

<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

Explanation:

The process of <em>free entry and exit of firms</em> is in a sequence as explained under-

  1. If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
  2. This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
  3. When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
  4. This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
  5. This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.

Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

4 0
3 years ago
Read 2 more answers
What do individual shareholders gain when they buy shares of a company’s stock?
olchik [2.2K]
It will definitely be A
6 0
3 years ago
Other questions:
  • If an amount box does not require an entry, leave it blank.
    5·1 answer
  • Onsite Restoration Inc. begins renovating houses for Property Company under a contract for a stated amount per house. After six
    10·1 answer
  • Steve Hamilton of Hamilton Supply Co. needed to purchase a new hydraulic lift that was high in quality and durability, yet low i
    9·1 answer
  • Assume that on 1/1/xx, a parent company acquired 90% interest in a subsidiary. The total fair value of the controlling and nonco
    5·1 answer
  • All of the following are among the activities a project manager should undertake to develop a highly effective team EXCEPT: ​ a.
    14·2 answers
  • Kresley Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows:
    7·1 answer
  • In connection with a "buy-sell" agreement funded by a cross-purchase insurance arrangement, business associate Adam bought a pol
    5·1 answer
  • ART Inc. has come out with a new and improved product. As a result, the firm projects an ROE of 25% a year until the end of year
    11·1 answer
  • A portfolio consists of 265 shares of Stock C that sells for $50 and 230 shares of Stock D that sells for $25. What is the portf
    11·1 answer
  • THIS IS BUSINESS ENGLISH!
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!