The simple rate of return on the investment is closest to: <u>34.5%</u>
<u>Explanation</u>:
<em><u>Given</u></em>:
Current salvage value = $15,000
Cost of new machine = $408,000
Cash operating cost = $141,000
Simple Return on Investment is Calculated as follows:-
Simple rate of return on the investment = Net Operating Cost Saved/ Initial Investment X 100
So Simple Return = 141000/408000 X 100
= 34.5%
The simple rate of return on the investment is closest to: 34.5%
Answer:
$785.34
Explanation:
The computation of the seller's share of the tax bill is shown below:
= Expected estate taxes for the year × number of days of the tax year ÷ total number of days in a year
= $31,50 × 91 days ÷ 365 days
= $785.34
We simply applied the proportionate method so that the approximate value could be arrived by taking all the information which is mentioned in the question.
These results are evidence of
"<span>
the endowment effect".</span>
The endowment effect<span>, in behavioral finance<span>, portrays a situation in which an individual qualities
something that they officially possess more than something that they don't yet
claim. Studies have indicated over and again that individuals will esteem
something that they effectively claim more to a comparable thing they don't
possess. It doesn't make a difference if the thing being referred to was bought
or gotten as a gift, the impact still stays.</span></span>
Explanation:
There are two alternatives
1. Sold for $6,300
The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500
2. Repair and after that sale it
Now in this case, we have to determine the benefit generated i.e come from
= Sale value - repairing cost
= $19,700 - $9,100
= $10,600
As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company
Answer: $2,085
Explanation:
Average monthly sales by the three salesperson are;
$125,000
$144,000
$148,000
Therefore, average total monthly sales by the three salesperson equals;
$125,000+$144,000+$148,000 = $417,000
Average total sales per month = $417,000
Monthly commission percentage = 0.5%
Monthly commission = 0.5% × 417,000
(0.5 ×417000) ÷ 100
208500 ÷ 100 = $2085
Monthly commission = $2,085
