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Artemon [7]
4 years ago
9

A company buys a machine for $76,000 that has an expected life of 6 years and no salvage value. the company anticipates a yearly

after tax net income of $1,805. what is the accounting rate of return
Business
2 answers:
Mazyrski [523]4 years ago
4 0

Answer:

The accounting rate of return is 2.37%

Explanation:

The accounting rate of return can be calculated by dividing the net income with the initial investment.

Thus given initial investment is $76000 and net income is $1805.

So, the accounting rate of return = (Net income / Initial investment) × 100

The accounting rate of return = (1805 / 76000) × 100

The accounting rate of return = 2.37%

Lina20 [59]4 years ago
3 0
To compute the accounting rate of return, you just have to divide the average accounting profit with the average cost of investment. In this problem, the average accounting profit is $1,805 and the average cost of investment is $76,000. Using the formula in computing the accounting rate of return, we can get 2.38% ($1,805 /<span> $76,000</span><span>).</span>
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4 years ago
If beginning inventory (bi purchases (p - ending inventory (ei = cost of goods sold (cogs, an equivalent equation can be written
Tomtit [17]
I had to look for the options and here is my answer:
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3 years ago
Read 2 more answers
The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaper is published 252 days per year (5 days
elena-s [515]

Answer:

The effective annual rate of interest is "10.38%".

Explanation:

The given values are:

Nominal annual interest rate,

Q = 10%

i.e.,

   = 0.10

Quarterly compounding,

q = 4

Now,

The effective annual rate of interest will be:

=  [{1 + (\frac{Q}{q} )}^q] - 1

On substituting the given values in the above formula, we get

=  [{1 + (\frac{0.10}{4} )}^4]  1

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=  1.10381289 - 1

=  0.10381289

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8 0
3 years ago
A _____ is a system that provides rewards and usage incentives, typically in exchange for a method that provides a more detailed
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3 years ago
Gilberto's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Gilberto's very tiny kitchen has ba
Leno4ka [110]

Answer:

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Explanation:

In the long run, all inputs are variable. E.g. in 5 years Gilberto might build his own pizza place and he will be able to make the kitchen as large as he wants.

But in the short run, some inputs are variable because they can be changed immediately, e.g. the number of workers changes on a weekly basis. While other inputs are fixed, and cannot be changed, e.g. Gilberto has a two yer lease contract for the ovens, so he will continue to use these ovens until the lease expires (in 2 years).

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