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
Morgarella [4.7K]
3 years ago
5

has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment $ 36,5

00 Annual cash inflows $ 8,600 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
Business
1 answer:
solmaris [256]3 years ago
4 0

Answer:

16.89%

Explanation:

As per the given question the solution of simple rate of return for the investment is provided below:-

we need to first find out the accounting profit and depreciation

where

Accounting Profit = Annual Cash Inflow - Depreciation

and

Depreciation =  Investment required in equipment ÷ Life of investment

= $36,500 ÷ 15

= $2,433.33

now we will put the value by using the accounting profit formula.

= $8,600 - $2,433.33

= $6,166.67

So,

Simple Rate of Return = Accounting Profit ÷ Initial Investment

= $6,166.67 ÷ $36,500

= 16.89%

You might be interested in
Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main mater
Anna007 [38]

Answer:

$29.00

Explanation:

Direct labor time standard consists of basic time plus allowance for breaks, downtime and rejections.

The direct labor standard cost per hour will be a combination of all factors relating to labor:

Carpenters' wages are $20.00 per hour.

Payroll costs are .............$3.00 per hour,

and benefits are .............$6.00 per hour.

Standard labor cost IS..$29.00 per hour.

7 0
3 years ago
Identify the incorrect statement concerning globalization. A. It has been blamed for unemployment in developed nations, environm
konstantin123 [22]

Answer:

C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition.

Explanation:

Globalization is integration of world economies. it has created threat to the employment opportunities in the developed countries since the large number of jobs are being outsourced to other countries.

3 0
3 years ago
In a perfectly competitive market, the market supply curve is a. always a horizontal line. b. the vertical sum of all the indivi
gayaneshka [121]

Answer: C.) Horizontal sum of all the individual firm's supply curve

Explanation: A perfectly competitive market, is that in which sellers or suppliers of a certain product are numerous such that a slight increase in price, and demand could fall to 0. Here, an individual seller has no control over the price of commodities. The supply curve tells how much quantity will be produced at different prices. Therefore the market supply curve is determined by all individual sellers individual price in other to determine the overall quantity to be produced at varying market price. Prices are drawn horizontally from the y-axis to determine quantity produced at different prices for each indivudual seller which is summed to generate the market supply curve.

4 0
3 years ago
Read 2 more answers
On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c
Kruka [31]

Answer:

<em>Options Include:</em>

A. $20,000

B. $16,800

C. $18,200

<em>D. $21,800 is Correct</em>

Explanation:

Interest income for a bond provided at a discount is equal to the total of both the periodic cash flows as well as the value of the amortized bond discount during the interest duration.

Periodic cash flows are equivalent to $20,000 ($500,000 death benefit multiply by 8 percent coupon rate multiply 1/2 year). The amortization for the discount is provided as $1,800.

<em>Income for the six-month period from July 1 to December 31, Year 4, is therefore $21,800 ($20,000 + $1,800).</em>

6 0
3 years ago
If total utility has reached a maximum level, and assuming that diminishing marginal utility already applies, then what will hap
Nady [450]

Answer:

Marginal utility of the additional units will turn negative

Explanation:

As total utility has reached a maximum level, adding additional units of the same product will generate the total utility to decrease thus, the marginal utility of this additional products is negative as they made the utility of the consumer to decrease.

The diminish return theory state that:

The units increase utility at a decreasing rate  and then, they reach a maximum of utility afterwhihc, additional units do not generate utility, they decrease it

4 0
3 years ago
Other questions:
  • You run a game-day shuttle service for parking services for the local ball club. Your total costs for different customer loads a
    14·1 answer
  • If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use _____
    8·1 answer
  • You are new. your supervisor is giving you lots of instructions for where to find information you will need to do your job. she
    8·2 answers
  • The custodial bank (located in the home country of the issuer) of an American Depository Receipt
    11·2 answers
  • EB7.
    14·1 answer
  • Identify which type of sampling is​ used: random,​ systematic, convenience,​ stratified, or cluster. upper a radio station asks
    7·1 answer
  • On january 1, zero company obtained a $52,000, 4-year, 6.5% installment note from regional bank. the note requires annual paymen
    14·1 answer
  • What is a trust established while the owner of the trust is still alive
    8·1 answer
  • Axle Corporation acquires​ 100% of Drexel​ Corporation's stock from​ Drexel's shareholders for​ $500,000 cash. Drexel Corporatio
    14·2 answers
  • A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to me
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!