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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:

a)

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b)

maximum inventory = EPQ*(1 - (d/p))

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d)

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With EPQ = 500, maximum inventory = 500*(1 - (300/320)) = 31.25

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3 years ago
John is a drummer who purchases his drumsticks online. When practicing with the newest pair, he notices they feel heavier than u
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Answer:

0.0042 is the probability of the stick's weight being 2.33 oz or greater.  

Explanation:

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We are given that the distribution of drumsticks is a bell shaped distribution that is a normal distribution.

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