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
Elina [12.6K]
2 years ago
10

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,

would be replaced by a new machine. The new machine would be purchased for $468,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $161,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.):
Business
1 answer:
Margaret [11]2 years ago
3 0

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

<u>return:</u>

In this case, it will be the cost saving for the new machine: 161,000

<u>investment</u>

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new   = 444,000

<u>Then, proceed to calculate:</u>

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

You might be interested in
"A client receives a $150 gift card from a broker-dealer for giving a testimonial about her highly positive experience with her
netineya [11]

Answer:

Explanation:

In a scenario such as this one, the broker-dealer is not required to disclose whether any guarantee of growth was made by the representative to induce the giving of the testimonial. This is backed by the FINRA rule on testimonials used in communications which states the following:

“Retail communications or correspondence providing any testimonial concerning the investment advice or investment performance of a member or its products must prominently disclose the following:

  • The fact that the testimonial may not be representative of the experience of other customers.
  • The fact that the testimonial is no guarantee of future performance or success.
  • If more than $100 in value is paid for the testimonial, the fact that it is a paid testimonial.”
5 0
3 years ago
Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail
bazaltina [42]

Answer:

there will be a surplus of retail workers in this labor market.

Explanation:

In the attached diagram the scenario is illustrated.

When the minimum wage is above the equilibrium wage it means that the minimum wage is above what employees are willing to pay workers. So employees will be less wiling to pay this amount.

There will be a reduction in the number of available slots for workers.

On the other hand workers will receive higher wage than they expected but since the slots for work are now limited there will be a surplus of labour in the market

3 0
3 years ago
Shontelle owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. She transfers
Alex787 [66]

Answer:

(a) $332,000

(b) $312,000

(c) $760,000

Explanation:

(a) Her realized gain or loss

Mathematically, Realized gain or loss = Amount realized - Adjusted Basis = (120000 + 780000 + 192000) - 760000.

= 1092000 - 760000

= $ 332000

(b) Her Recognized gain.

Mathematically, her recognized gain = Amount received in cash + Amount received in Mortgage = 120,000 + 192,000 = $312,000

(c) Basis of newly acquired office Building.

Mathematically:

Basis of newly acquired building = Fair market value of building - (realized gain - recognized gain) = (780,000)-(332,000-312,000) = 780,000-20,000 = $760,000

8 0
3 years ago
What is the correct Price Rule Setup? Universal Containers wants to apply an additional discount of 15% to the Quote when Paymen
DaniilM [7]
<h3><u>Answer:</u></h3>

One Price Rule with Conditions Met set to Custom, three Price Conditions, and one Price Action

<h3><u>Explanation:</u></h3>

The price rule record has the price rule, condition and action. The price rule must be explained clearly. Price condition is comparison of one field value with the other field value. The price rules contain conditions and the price rule can have an infinite number of conditions.

But for the above given questions we have 3 conditions. When the price rule meets by the conditions given it performs a particular action. Some of the fields  in the price rule cannot be edited and and have security.

8 0
2 years ago
You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond
weqwewe [10]

Answer:

$498.94

Explanation:

1 year interest rate = 5%

11 year interest rate = 7%

10 year spot interest rate at end of 1 year = [{(1+0.07)^11 / (1+0.05)}^(0.1) - 1]

10 year spot interest rate at end of 1 year = [(2.104852/1.05)^0.1] - 1

10 year spot interest rate at end of 1 year = 1.07202083615 - 1

10 year spot interest rate at end of 1 year = 0.072021

10 year spot interest rate at end of 1 year = 7.202%

Face value = $1,000

Forward Price of contract = $1000/(1+0.0720)^10

Forward Price of contract = $1000/2.00423136

Forward Price of contract = 498.944392915

Forward Price of contract = $498.94

5 0
3 years ago
Other questions:
  • The average human lifespan is expected to increase by how many years by 2100? 15 years 30 years 10 years 25 years
    8·1 answer
  • One of the most important cells in the human body is?
    13·1 answer
  • When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the
    8·1 answer
  • What steps can you take to prevent yourself from being affected by a market correction? Explain.
    10·1 answer
  • Donald, the owner of a popular restaurant, is a religious man, and he needs to make a decision on whether he will add beer and w
    10·1 answer
  • I need frends anyone want to be my frend :[
    10·1 answer
  • 2. What are mortgage brokers?
    13·1 answer
  • On average, consumers spend only about _______________ seconds deciding to buy one brand as opposed to another branded option fr
    9·1 answer
  • lack of property rights diminish economic growth. diminish economic growth. increases productivity. increases productivity. enco
    7·1 answer
  • The moving-average forecasting method is a very good one when conditions remain pretty much the same over the time period being
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!