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german
3 years ago
6

A project produces annual net income of $18,200, $21,800, and $22,900 over its three-year life, respectively. the initial cost i

s $197,000, which is depreciated straight-line to a zero book value over three years. what is the average accounting rate of return if the required discount rate is 14.5 percent?
Business
1 answer:
rjkz [21]3 years ago
3 0
Initial cost = $197,000
Total net accounting income over three years = $18,200+$21,800+$22,900 = $62,900

Average annual accounting net income = $62,900/3 = $20,966.67

Accounting rate of return = Average net annual income / Initial cost = 20,966.67/197,000 = 0.106 = 10.6%

Since Accounting net income is  lower than the required discount rate, the project is not viable.
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Answer and Explanation:

The computation of the overhead rate for each activity is as follows;

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3 years ago
For long-term positive relations, the goal of negotiation should most likely be to ________. a) establish a clear line of commun
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Answer:

The correct answer is c) reach a settlement that benefits all parties.

Explanation:

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Answer:

Build more factories, Expand the size of current factories, Use cheaper materials

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Long run is not a precise period of time thereby meaning it could span from a year to eternity, which is adequate time to plan and grow. Building more factories will increase the growth in size for the capacity for  more production as well as expanding the size of the current factories. Due to the fact that there is a constraint of production capacity the company should look for alternatives in production technology in the long run so as to reduce cost of materials  but with the same production quality.

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Answer:

See explanation section.

Explanation:

The correct journal to record this transaction is -

Cash                    Debit          $40,000

Common stock   Credit         $40,000

Note: As Callie Taylor invests the amount in exchange for common stock, An asset (cash) will be increased, and equity (common stock) will be increased. An increase in asset means debit, while an increase in equity means credit.

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Answer:

b. = 31,740,000

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69,000,000 - 37260000 = 31,740,000

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