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
Alla [95]
3 years ago
15

nco purchased a computer for $200,000 and this machine is expected to generate annual cash flows of $48,271 over the next 5 year

s. What is the expected rate of return on this investment g
Business
1 answer:
Anika [276]3 years ago
4 0

Answer:

The expected rate of return on this investment is:

21%

Explanation:

Cost of computer = $200,000

Annual cash flows for 5 years = $48,271

Total cash flows = $241,355 ($48,271 x 5)

Returns = $41,355 ($241,355 - $200,000)

The expected rate of return = Returns/Costs * 100

or the average of returns and the average of investments (they yield the same results)

Using the total returns and investment:

= $41,355/$200,000 * 100

= 21%

Using the average returns and investment:

= $8,271/$40,000 * 100

= 21%

You might be interested in
Nominal GDP is multiple choice 1 the sum of intermediate and final goods and services, whereas real GDP is the sum of final good
Alexus [3.1K]

Answer: b. market or money value of all final goods and services produced by the economy in a given year, whereas real GOP is adjusted for inflation

Explanation:

Nominal GDP for a given year refers to the final value of all goods and services in the country using the current year prices.

Real GDP however, makes it easier to compare the nominal GDP to past GDPs because it removes the effects of inflation by using prices from a base year to calculate GDP. This way it can be seen if the economy actually grew.

3 0
3 years ago
A​ lump-sum purchase or basket purchase involves paying a single price for several assets as a group.
il63 [147K]

Answer:

TRUE

Explanation:

A basket purchase is the acquisition of a number of assets as a group, in a single purchase transaction. This is common when the basket purchase is lower than the price charged for individual assets.

7 0
3 years ago
No matter what way you approach raising money for your business, you will need a ________. written business plan family investme
Alborosie

Answer:

The correct answer is letter "A": written business plan.

Explanation:

A business plan outlines the objectives a company wants to achieve and the strategies it decided to use for such purpose. Business plans are set after the company has identified and recorded the core competencies and resources it has to make the project become reality. Business plans are useful to establish the steps an organization should follow to accomplish every firm's ultimate goal: <em>generate profit</em>.

3 0
3 years ago
What are the consequences of traditional law of production
adoni [48]
What are the sequence of traditional law of production
6 0
3 years ago
A.Red Company has excess cash to invest and pays Ş 50.000 to buy Ş 50.0000 face value, % 5 five-year B Company’s bonds July 1, 2
likoan [24]

Answer:

Dr Bond investment   $50,000

Cr  cash                                          $50,000

Dr cash                               $1,250

Cr interest revenue                            $1,250

Dr cash                          $50,000

cr bond investment                       $50,000

Explanation:

On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount

On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.

Upon receipt of face value at redemption,the journal entry would be opposite of the initial one

4 0
3 years ago
Other questions:
  • A person who has always enjoyed cooking may decide in late adulthood to have fewer elaborate dinner parties because they require
    10·1 answer
  • Newtown Propane currently has $490,000 in total assets and sales of $1,820,000. Half of Newtown’s total assets come from net fix
    12·1 answer
  • Portia grant is an employee who is paid monthly. for the month of january of the current year, she earned a total of $8,260. the
    9·1 answer
  • Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved
    8·1 answer
  • What are capital gains on an investment?
    10·1 answer
  • If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:
    5·1 answer
  • A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $13, plus a fixed charge of $96
    8·1 answer
  • Elm Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $420,000
    11·1 answer
  • Under what conditions do you think the U.S. dollar might weaken against other major currencies (i.n. the euro, yen and yuan)
    12·1 answer
  • Dnstrstdhfgjfuufuufdydydyufcjcjigjvcjfrdgddfhh
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!