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Lemur [1.5K]
3 years ago
13

Walden Industries is considering investing in productionminusmanagement software that costs $ 630 comma 000​, has $ 60 comma 000

residual​ value, and leads to cost savings of $ 1 comma 660 comma 000 per year over its fiveminusyear life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.
Business
1 answer:
nadya68 [22]3 years ago
4 0

Answer:

345,000

Explanation:

accounting rate of return:

\frac{net \:profit}{average \: investment}

The average investment will be the average between the ending and beginning book value of the investment:

In this case, the acquisition of the software and his salvage value at the end of the useful life.

( 630,000 + 60,000 ) / 2 = 345,000

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​Aggressive growth funds are highly speculative and seek large profits from capital gains.

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1 year ago
Porches & verandas, inc., agrees to build a screen porch for quinn, but fails to complete the job. quinn hires ramadas, inc.
Dvinal [7]
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3 years ago
The area of accountancy that is focused on arranging company financial information to give to managers to make decisions is
Alina [70]

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Managerial Accounting includes any topics from cost accounting. It helps managers to make internal plans, execute them and also see if the plans have been accurate.

4 0
3 years ago
You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
Trava [24]

Answer:

Loss of $500

Explanation:

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Stock price = 123

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Premium price = 5

Recall that

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3 0
3 years ago
You are saving for retirement. To live​ comfortably, you decide you will need to save $ 1million by the time you are 65.Today is
kozerog [31]

Answer:

Monthly pay= 5344.67

Explanation:

Giving the following information:

To live​ comfortably, you decide you will need to save $ 1million by the time you are 65.

Today is your 29th ​birthday, and you​ decide to put the same amount into a savings account. If the interest rate is 8%​.

How much must you set aside each year?

n= 36

i= 0.08

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We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

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A= 80000/14.96817184

A= 5344.67

8 0
3 years ago
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