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Naily [24]
3 years ago
9

Sheffield Company had an investment which cost $250000 and had a salvage value at the end of its useful life of zero. If Mussina

's expected annual net income is $5000, the annual rate of return is:
Business
1 answer:
devlian [24]3 years ago
6 0

Answer: 4%

Explanation:

From the question, we are informed that Sheffield Company had an investment which cost $250000 and had a salvage value at the end of its useful life of zero and that Mussina's expected annual net income is $5000.

It should be noted that the annual rate of return is calculated as the average Income divided by the average investment. Here, the average Income is $5,000 while the average investment will be ($250,000/2) = $125,000.

Therefore, annual rate of return will be:

= $5000/$125,000

= 4%

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The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.
Nana76 [90]

Answer:

b. capitalized

Explanation:

The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.

3 0
3 years ago
The job of an ethics officer is to serve as a counselor for employees
quester [9]

True, an ethics officers' role is to act as a counsellor for employees as well as an investigator for the firm.

The Ethics Officer is the company's inner or internal control point for ethical and improper conduct, allegations, objections, and improprieties, as well as providing leadership and guidance on corporate governance problems.

Learn more:

brainly.com/question/18072443?referrer=searchResults

3 0
3 years ago
It is likely that airplane tickets will be increased by 5% each year for the next four years. The cost of the plane ticket to De
Luba_88 [7]

Answer:

The amount to save now is = $862.03 (to 2 decimal places)

Explanation:

In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:

Year 1 ending = $200

Year 2:

Year 2 beginning price = $200

Note that 5% increase = 5/100 = 0.05

increase in year 2 = 5% of 200 = 0.05 × 200 = 10

Year 2 new price = 200 + 10 = $210

Year 3:

beginning price = $210

increase in year 3 = 0.05 × 210 = $10.5

Year 3 new price = 210 + 10.5 = $220.5

Year 4

beginning price = $220.5

interest in year 4 = 0.05 × 220.5 = 11.025

new price in year 4 = 220.5 + 11.025 = $231.525

Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:

Total amounts needed = 200 +210 + 220.50 + 231.53 = $862.03

5 0
3 years ago
Parker & stone, inc., is looking at setting up a new manufacturing plant in south park to produce garden tools. the company
Setler [38]

The initial investment is the total amount spent or the amount of cash outflow.

The initial investment here is -

Proper cash flow amount = Cost of land (present cost of land) + Cost of Plant + Cost of Grading

Proper cash flow amount = $ 4,300,000 + $ 11,500,000 + $ 670,000

Proper cash flow amount = $ 16,470,000

4 0
3 years ago
Rowell Company spent $3 million two years ago to build a plant for a new product. It then decided not to go forward with the pro
ELEN [110]

Answer:

B. If the building could be sold, then the after-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.

Explanation:

The proceeds from a potential sale are the opportunity cost of using the building for a given project instead of selling to a third party. Not including any cost will lead to project not recovering the entire capital used in it.

Is important to notice this is the after-tax proceeds from the sale of the building.

3 0
3 years ago
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