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maw [93]
3 years ago
13

Linwood is making an equipment change at his company. An old piece of equipment, with a salvage value of $60,000, is being repla

ced by new equipment. The new equipment costs $980,000 and would have a 10 year useful life and no salvage value. By replacing the equipment, Linwood will save $164,000 per year in cash operating costs. The simple rate of return on this investment is
Business
1 answer:
MArishka [77]3 years ago
6 0

Answer:

The simple rate of return is 0.178 or 17.8%

Explanation:

From the given question, we solve for the simple rate return on this investment

Solution

Recall that, the simple rate of return is defined as:

The simple rate of return = The  operating  net cash savings /  Cash net investment

Thus,

The operating net cash savings = $164000  and

The cash net investment = $980000- $60000 = $920000

Then,

The Simple rate of return = $164000 / $920000 = 0.178 i.e. 17.8%

Therefore the simple rate of return on this investment is 0.178 or 17.8%

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valkas [14]

Answer: The answer would be C. Collective bargaining

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3 years ago
Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other heal
Diano4ka-milaya [45]

hospital indemnity

A supplemental insurance policy called hospital indemnity coverage is created to cover expenses associated with hospital admittance that might not be reimbursed by other insurance. Workers who are admitted to a clinic or intensive care unit for a covered illness or injury are covered by the plan. Additionally, it is accessible to businesses with as little as two employees.

Since the majority of Americans don't have enough resources to pay for unforeseen medical costs, hospital indemnity coverage can be very useful.1 The plan provides cash directly to workers even if they don't have any out-of-pocket costs. The funds can be used for anything, including: medical copays, deductibles, and ongoing costs like rent, food, and utilities.

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6 0
2 years ago
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount repor
konstantin123 [22]

Answer:

Total Cash and Cash Equivalents = $14,100

Explanation:

Particulars                 Amount     Reason

Checking Account     $6,000      Readily realizable

Bond Investment          Nil            The bond is due in 20 yrs, hence not readily realizable

U.S. Treasury Bill        $6,500       Due in 1 month

Loan to an Employee     Nil           The loan is for a period of more than 3 months

Currency and Coins    $1,600        They are cash itself

Accounts Receivable     Nil            Accounts receivable is not considered as readily realizable

Total Cash and Cash Equivalents = $14,100

5 0
3 years ago
Xpo Center Inc. and Festival Music LLC have an executory contract. They agree to rescind it and simultaneously enter into a new
NeX [460]

An executory agreement exists between Festival Music LLC and Expo Center Inc. They consent to cancel it and sign a new agreement at the same time. The new contract will probably be invalid if the earlier one was subject to a preceding responsibility.

The promise may be prevented from contesting the legality of the contract if the promisee can prove that they properly relied on the promise. Under the law of fraud, agreements that are made in writing and include the signatures of all parties are regarded as valid.

The majority of nations have laws that forbid minors under the age of 18 from signing legally binding contracts. A minor who enters into a contractual contract has the legal right to choose whether or not to abide by its conditions. There are, however, a disproportionately large number of severe cases.

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brainly.com/question/24225827

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6 0
1 year ago
Pick the correct statement related to net working capital from below. Multiple Choice Net working capital can be ignored in proj
zvonat [6]

Answer:

Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.

Explanation:

Net working capital is the difference between current assets and current liabilities. Net working capital measures a company's liquidity.

In project analysis, net working capital is part of the cost. It is usually subtracted from cash inflows.

Net working capital is a cash outflow.

Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.

4 0
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