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GenaCL600 [577]
3 years ago
11

The following data concerns a proposed equipment purchase: Cost $144,000 Salvage value $4,000 Estimated useful life 4 years Annu

al net cash flows $46,100 Depreciation method Straight-line Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is:
a. 7.7%.
b. 15.0%.
c. 5.0%.
d. 62.3%.
e. 32.0%.
Business
1 answer:
zvonat [6]3 years ago
8 0

Answer:

Option (B) is correct

Explanation:

Depreciation expense:

= (cost - salvage value) ÷ estimated useful life

= ($144,000 - $4,000) ÷ 4

= $35,000

Average investment:

= (cost + salvage value) ÷ 2

= ($144,000 + $4,000) ÷ 2

= $74,000

Net income:

= Annual net cash flows - Depreciation expense

= $46,100 - $35,000

= $11,100

Accounting rate of return:

= (Net Income ÷ Average investment) × 100

= ($11,100 ÷ $74,000) × 100

= 15%

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Answer:

1. $54,000

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Explanation:

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= $50,000 + ($20,000 × 20%)

= $50,000 + $4,000

= $54,000

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6 0
3 years ago
Putting together two or more parcels of land to make a large piece is called:________.
NeTakaya

Answer:

Assemblage.

Explanation:

In Real estate, putting together two or more parcels of land to make a large piece is called assemblage. The main purpose of assemblage is to increase the price of parcels of land by combining them together rather than selling them individually as a single unit.

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6 0
3 years ago
Suppose you bought 100 shares of IBM at $200 per share. What is the maximum loss if you place a stop-loss order at $165
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Answer:

$3,500

Explanation:

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3 years ago
Advantages of newspaper advertising
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Answer:

Can't be blocked by ad blocker. Lots of people will see the ad.

Explanation:

8 0
4 years ago
Read 2 more answers
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