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IRINA_888 [86]
4 years ago
14

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $11,000,

would be replaced by a new machine. The new machine would be purchased for $243,000 and would have a 9 year useful life and no salvage value. By automating the process, the company would save $69,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.): Multiple Choice a. 18.1% b. 11.1% c. 28.4% d. 17.3%
Business
1 answer:
Anna35 [415]4 years ago
5 0

Answer:

The simple rate of return on the investment is closest to a. 18.1%

Explanation:

Assuming that the company uses straight-line depreciation method, Depreciation Expense per year is calculated by following formula:

Depreciation Expense = (Cost of machine − Salvage Value)/Useful Life  = ($243,000 - 0)/9 = $27,000

If Ro Corporation uses the new machine, the company would save $69,000 per year in cash operating costs. Net income from the machine per year = $69,000 - $27,000 = $42,000

Total investment on the machine = $243,000 - $11,000 = $232,000

Return on investment (ROI) = Net income/Total investment  x 100% = $42,000/$232,000 x 100% = 18.1%

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Homer wants to borrow money from the springfield bank to buy a trampoline. The bank requires collateral for loan what is collate
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Answer:

Collateral is a downpayment for the loan

Explanation:

Collateral is basically saying I'll give you what I have right now for this and when I get on my feet ill be able to pay you back then

5 0
3 years ago
Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are em
amid [387]

Answer:

a) 29%

Explanation:

The formula to compute the unemployment rate is shown below:

Unemployment rate = (Number of Unemployed workers) ÷ (Total labor force) × 100

where,

Number of unemployed = 40 million

Total labor force = Number of unemployed + number of employed

                            = 40 million + 100 million

So, the unemployment rate would be

= (40 million) ÷ (140 million) × 100

= 29%

5 0
3 years ago
A fruit packing plant usually shuts down for three months each year. during that period, what happens to its costs? its fixed co
VikaD [51]
During the three-month period, the plant is not able to produce anything because it shut down. Hence, its variable cost is equal to zero, however, during this period, the fixed cost is still greater than zero because of the process that needs to be done in order to ensure that once the plant is restarted. 

For the reason stated above, the most likely answer to this item is the first choice. 
7 0
3 years ago
When other salespeople believe that a sales manager has valuable knowledge or skills in a given area, the sales manager is able
netineya [11]

Answer:

The correct answer is: expert power.

Explanation:

Expert power is power derived from the belief of workers that a manager or some other member of an organization has a high level of knowledge or some sort of unusual skills not acquired or displayed by other employees or coworkers of the company. This provides the skilled worker a certain influence at the moment of deciding workers of the same hierarchy.

6 0
4 years ago
Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. What type of
elena55 [62]

Answer:

Promissory agreement and Deed of trust.

Explanation:

In this scenario, Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. The type of financial agreement that Seller Dayne have with this lender is a Promissory agreement and Deed of trust.

A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.

On the other hand, a deed of trust can be defined as a legal document used by a party (borrower) to pledge his or her property to another party (lender) as guarantee or collateral for the repayment of a loan. The deed of trust is typically made up of three (3) parties; the lender, borrower and a trustee.

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6 0
3 years ago
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