1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Degger [83]
3 years ago
6

swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by

$134,000 and will increase annual expenses by $76,000 including depreciation. The oil well will cost $449,000 and will have a $11,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return.
Business
1 answer:
lianna [129]3 years ago
4 0

Answer: 25.22%

Explanation:

Given that,

Annual revenue = $134,000

Annual expenses = $76,000

Oil well cost = $449,000

Salvage value = $11,000

Annual net income = Annual revenue - Annual expenses

= $134,000 - $76,000

= $58000

Average Investment = \frac{449000 + 11000}{2}

= $230000

Annual rate of return =  \frac{58000}{230000}\times100

= 25.22%

You might be interested in
Select the true statement or statements regarding the loanable funds market. Foreign entities cannot save in the United States.
Shalnov [3]

<u>Solution: </u>

The following are the correct and incorrect options

<u>Correct option</u>: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.

<u>Correct option</u>: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).

<u>Other options are not correct: </u>

<u>Incorrect option</u>: Savings means personal savings, which are not yet kept into a bank.

<u>Incorrect option</u>: such purchases are investments but not savings.

3 0
3 years ago
Which is not a mandatory subject matter for good-faith bargaining? a. seniority b. insurance c. pension plans d. strike vote e.
maksim [4K]

Answer:

The correct answer is letter "D": strike vote.

Explanation:

Collective Bargaining is the act by which employees organized in labor unions negotiate with employers (mainly managers) about compensations and work conditions. <em>Wages, working hours, merit pay, </em>and <em>vacation length</em>, are common topics of discussion between the two parties.

<em>A strike is the stop of operations of a company because of unattended labor union request. The decision of going on a strike or not relies merely on the union and the </em><u><em>strike vote</em></u><em> is subject to that group only.</em>

4 0
3 years ago
Which is TRUE?
fiasKO [112]
D. is correct. Both share responsibility
8 0
3 years ago
Read 2 more answers
The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value
faust18 [17]

Answer:

The correct answer is "43,000".

Explanation:

The given values are:

Carrying amount,

= $4060000

Face value,

= $3900000

Now,

For June 30, 2021, the Interest expense will be:

= 4060000\times 10 \ percent\times \frac{1}{2}

= 203,000

For June 30, 2021, the cash interest will be:

= 3900000\times 8 \ percent\times \frac{1}{2}

= 156,000

Now,

On June 30, 2021, the premium's amortization will be:

= Interest expense - Cash interest

= 203,000-156,000

= 47,000

On retirement, the cash paid will be:

= 3900000\times 104 \ percent

= 4,056,000

On June 30, 2021, the less carrying amount will be:

= Carrying amount - amortization

= 4060000-47000

= 4,013,000

Then,

The loss on retirement as well as ignoring taxes will be:

= Cash paid - less carrying amount

= 4,056,000-4,013,000

= 43,000

6 0
2 years ago
American apparel makers complain to Congress about competition from China. Congress decides to impose either a tariff or a quota
Ugo [173]

Answer:

Quota is preferred by the Chinese apparel manufacturers.

Explanation:

The reason is that the China has an competitive advantage of less costly workers and also that they are highly competitive in terms of prices. Usually the quality of American’s products are far much better in quality and technology. This means if the tariffs are imposed on Chinese products then their are huge revenue losses to Chinese apparel manufacturers. Whereas quota will enable them to sale their products to America which shows lower revenue losses.

So quota is far much better for Chinese manufacturer’s in case if America decides to use protectionist approach, I mean America decides to imposed trade barriers for Chinese companies to protect American companies.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Joe is an accountant and plans to join a group of accountants. he compares a group in a general partnership with a group in a li
    12·1 answer
  • If you cannot identify the author of a document on the web, you should try to determine the sponsoring organization for the docu
    9·1 answer
  • Six years ago, James Corporation sold a $100 million bond issue to expand its facilities. Each debenture has a $1,000 par value,
    9·1 answer
  • What contribution did beer production make to the process of bread making?
    7·1 answer
  • You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,
    12·1 answer
  • identify 3 challenges bricks construction may encounter when trying to implement their corporate social investment plan in the l
    11·1 answer
  • Reporting Net Sales with Credit Sales, Sales Discounts, and Credit Card Sales
    15·1 answer
  • xercise 7-24 (Static) Assigning Costs to Jobs (LO 7-1, 2) Forest Components makes aircraft parts. The following transactions occ
    10·1 answer
  • ProForm acquired 70 percent of ClipRite on June 30, 2017, for $770,000 in cash. Based on ClipRite's acquisition-date fair value,
    6·1 answer
  • The Heating Division of Kobe International produces a heating element that it sells to its customers for $40 per unit. Its varia
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!