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
Andreas93 [3]
4 years ago
12

Tawney Company is considering investing in a new piece of equipment that costs $700,000 and has a $200,000 residual value. The n

ew equipment should provide a cost savings of $60,000 per year over its five-year life. In calculating ARR, what is the average amount invested in the asset (denominator)?
Business
1 answer:
timama [110]4 years ago
7 0

Answer:

average amount invested in the asset =  $450,000

Explanation:

given data

equipment costs = $700,000

residual value = $200,000

cost savings = $60,000

to find out

average amount invested in the asset

solution

we get here Average amount invested  that is express as

average amount invested in the asset = ( Amount invested + Residual value) ÷  2     ........................1

put here value we get

average amount invested in the asset = \frac{$700000+$200000}{2}

average amount invested in the asset =  $450,000

You might be interested in
You have a factory that makes an odorless spray that repels pet fur (useful for clothing, carpets, and car interiors for pet own
never [62]

Answer:

You should increase production.

Explanation:

According to microeconomic theory, the equilibrium point for production is where the value of marginal cost equals the price. While the marginal cost be less than price, is accurate to say that cost productions are not being minimized. This minimization of cost is reach exactly when the marginal cost equals the price.

4 0
3 years ago
Some global corporations are large enough to create major changes in the external environment. Group of answer choices True Fals
Harrizon [31]

Some global corporations are large enough to create and influence major changes in the external environment: False.

<h3>What is a corporation?</h3>

A corporation refers to a corporate organization that has facilities and owns assets that are used for the production of goods and services in at least one country, other than its headquarter which is located in its home country.

However, it is false to infer or state that some global corporations are large enough to create and influence major changes in the external environment.

Read more on corporations here: brainly.com/question/25787830

#SPJ1

3 0
2 years ago
Which of the following will increase a company’s current liabilities? You may select more than one answer.
vichka [17]

Answer:

A company purchases inventory on credit.

Explanation:

Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.

So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.

8 0
3 years ago
Naomi tells ogden, who has no knowledge of shakespearean comedy, that she will tutor him in the subject for $50. as an offer, th
Licemer1 [7]
As an offer, this is effective.
Ogden obviously wants to know something about Shakespearean comedy, because he may need it for an exam, or his job, or maybe he is just interested in the subject. Thus, he wishes to learn this from someone, which makes Naomi's offer an effective one.
7 0
3 years ago
The story of the Reset Button is an example of a noise caused by (select all that apply)
sukhopar [10]

Answer:

B) Cultural background

C) Emotional interference

D) Communication skills

E) Poor listening skills

Explanation:

Hitting reset button for companies is bringing the existing state of affairs back to normal, the time to hit the Reset button is when status quo or the existing state of affairs become unacceptable, when employee, employer and everything needs a wake-up call including you.

However the story of the Reset Button is an example of a noise caused by Cultural background, emotional interference, Communication skills, Poor listening skills.

4 0
3 years ago
Other questions:
  • you are a trust fund baby, but you cannot touch your money until you are 30. you are now 21 and want to plan for your future bas
    14·1 answer
  • Navarro, Inc., issued $250,000 of eight percent, 20‑year bonds at 98 on June 30, 2012. Interest is payable semiannually on Decem
    6·1 answer
  • An important effect of economic growth is that it
    5·1 answer
  • NewDigger Inc. makes backhoes for digging ditches and trenches. It has developed an environmental-friendly liquid that, when pou
    8·1 answer
  • Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work re
    11·1 answer
  • An investor purchases an original issue discount general obligation municipal bond (OID) on the offering and holds it to maturit
    10·1 answer
  • As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so t
    5·1 answer
  • Please help! :)
    14·1 answer
  • How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting period?
    12·1 answer
  • Rapidly growing firms pay high dividends to shareholders.a. true b. false
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!