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Ipatiy [6.2K]
3 years ago
12

Pepper Company is using the annual rate of return to evaluate a potential investment. The original investment required is $120,0

00, and the investment’s salvage value is $20,000. What is the average investment that Pepper will use when computing the annual rate of return?
A : $60,000

B : $70,000

C : $50,000

D : Cannot be determined unless the useful life of the project is known.
Business
1 answer:
Naily [24]3 years ago
3 0

Answer:

B : $70,000

Explanation:

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

= Annual net income ÷ average investment

where,  

Annual net income is XXXXX

And, the average investment would be

= (Original investment required + salvage value) ÷ 2

= (120,000 + $20,000) ÷ 2

= $140,000 ÷ 2

= $70,000

By placing these values we can easily compute the annual rate of return

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Which spreadsheet function is used to conduct a logical test to see if the conditions of a given expression can be met? A. Round
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D.IF Function (APEX VERIFIED)

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You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,
storchak [24]

Answer:

The value of the settlement today =  $231,897.79  

Explanation:

The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.

Year                                                   PV

1              35,000 × 1.057^(-1)   = 33112.58

2                39,000× 1.057^(-2) = 34907.16

3.               80,000× 1.057^(-3)  = 67743.09

4                 120,000 × 1.057^(-4) =96134.94

The Pv of the total cash in flow =33,112.58  +  34,907.17  +  67,743.09  +  96,134.95  =  231,897.79  

The value of the settlement today =  $231,897.79  

7 0
3 years ago
For which expense do state governments provide financial help to their local governments?
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A marketing channel is defined as a group of individuals and organizations that
lisabon 2012 [21]

Correct/complete Question:

A marketing channel is defined as a group of individuals and organizations that

a. consumes about one-half of every dollar spent on products in the United States.

b. directs the flow of products from producers to customers.

c. links producers to other marketing intermediaries.

d. manages transportation and warehousing functions.

e. takes title to products and resells them.

Answer:

B, directs the flow of products from producers to customers.

Explanation:

A marketing channel refers to the persons and activities that are involved in the movement or transfer of goods from the manufacturer to the consumer within the supply chain.

It can also be said to a network of distributing good and services

I hope this helps.

3 0
3 years ago
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct l
GarryVolchara [31]

Answer:

$4,089 Unfavorable

Explanation:

Data provided

Standard variable rate = $9.20

Direct labor hours = 1,160

Variable manufacturing overhead costs = $14,761

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Variable overhead rate variance = (Standard variable rate - (Variable manufacturing overhead costs ÷ Direct labor hours)) × Direct labor hours

= ($9.20 - ($14,761 ÷ 1,160) × 1,160

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