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inna [77]
3 years ago
11

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:
ra1l [238]3 years ago
5 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.

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The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the
Pie

Answer: Control Systems

Explanation:

Control systems in business are procedures designed to evaluate, monitor, regulate, supervise and ascertain whether organisational strategies, plans and structures are working efficiently and effectively. It also ensure assets and resources are checked and well documented to avoid things going missing.

7 0
3 years ago
Which of the following is a characteristic of a management control​ system? A. It deals with coordinating planning across the or
Katen [24]

Answer:

D. Helps managers to act rapidly and with autonomy

Explanation:

The management control system defines that every policy and procedure should be followed in a proper manner and work on new strategies for the benefit of the organization. It helps in managing the hierarchy level and differentiates the performance company resources like finance, marketing, sales, Human resource management, operations, etc.  

Therefore the management control system provides to work with sovereignty so that the work runs in a smooth and inefficient and effective manner. It also helps the managers to take the action quickly before things go out of control.

3 0
3 years ago
Develop a list of the main arguments, pro and con, that could be presented at a public hearing on the matter by members of each
Andrei [34K]

Answer:

The following is the list of arguments that could be produced at the time of public hearing:

Owners of small business located nearby:

Pros:

additional business ideas can be developed

Un-employed can get opportunities for employment

Low investment – high profits

It acts as good retailer

E-commerce can be highly developed

Product diversity

Cons:

Lot many ideas can leads to confusion

Poor health conditions

High profits – high risks

Decision making on critical situations will be difficult

Racism issues might occur

Lot many employees at one place creates mess

Town residents and residents of nearby towns:

Pros:

Affordable prices

Lot many options

Many products

Employment opportunities

Helps for the development of the country

Cons:

Many options lead to confusion

Many products – consumer will not able to decide what to buy

Individual growth might be delayed

Risk is high

Investments can't be returned with high-speed

Explanation:

8 0
2 years ago
At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Account
anzhelika [568]

Answer:

The balance of uncollectible accounts after the adjustment will be $15,000

Explanation:

On December 31, the balance of the accounts receivable is $300,000 and on same data it is suggested that the 5% of the account receivable will be not be collected.

So, the balance of the uncollectible accounts will be computed as:

Uncollectible accounts = Account receivable balance × % which will not collected

where

Account receivable balance is $300,000

% which will not be collected is 5%

Putting the values above:

= $300,000 × 5%

= $15,000

NOTE: The allowance for uncollectible accounts of $1,000, already credited, so will not be considered again.

8 0
3 years ago
Definition of collateral​
Romashka [77]
Collateral- Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
8 0
3 years ago
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