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Marina CMI [18]
3 years ago
10

(Ignore income taxes in this problem.) The management of Stanforth Corporation is investigating automating a process. Old equipm

ent, with a current salvage value of $15,000, would be replaced by a new machine. The new machine would be purchased for $408,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The simple rate of return on the investment is closest to:
Business
1 answer:
solniwko [45]3 years ago
3 0

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%

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Development may be inhibited in command economies because..
kiruha [24]
Development may be inhibited in command economies because :
1. Government controls productivity
in command economies, the government basically regulate everything, including what to produce and its selling price

hope this helps
7 0
3 years ago
Herman Co. is considering a four-year project that will require an initial investment of $7,000. The base-case cash flows for th
goldenfox [79]

Answer:

Net Present Value    $ 23,373.49

Explanation:

First, we solve for the expected return:

\left[\begin{array}{cccc}State&Return&Probability&Weight\\best-case&19,000&0.25&4,750\\base-case&12,000&0.5&6,000\\worst-case&-3,000&0.25&-750\\Total&&1&10,000\\\end{array}\right]

Now, we solve for the present value of this vaue over the four-year period:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 10,000.00

time 4

rate 0.12

10000 \times \frac{1-(1+0.12)^{-4} }{0.12} = PV\\

PV $30,373.4935

<u>Last we subtract the investment cosT:</u>

30,373.49 - 7,000 = 23,373.49

5 0
3 years ago
To maintain public confidence and trust in the financial reporting of companies is the purpose of
irakobra [83]

Answer:

The answer is: the Sarbanes-Oxley Act of 2002

Explanation:

The Sarbanes-Oxley Act (SOX) was elaborated in response to several high profile corporate scandals involving multinational corporations. The most infamous scandal involved Enron Corporation and Arthur Andersen LLP (one of the five largest accounting corporations in the world).

The SOX set new requirements for all publicly traded corporations (especially their upper management) an public accounting firms. Only some parts of the SOX apply to private companies.

8 0
3 years ago
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant,
Naddika [18.5K]

Answer:

$380

Explanation:

Ziva's total cost of farming is composed of two different costs: explicit and implicit costs.

Explicit cost is an out-of-pocket cost that a person incurs to carry out a particular business activity. It is sort of, a business-related expense for which the business pays. In Ziva's case, it is $130, the cost of the seeds

Implicit costs are opportunity costs. An opportunity cost refers the benefits an individual, investor or business misses out on when opting for one alternative in preference of another. In our case, it amounts to $250($25*10 hours)

Thus, Ziva's cost of farming

= $130 +( $25*10) = $130 +$250 = $380

5 0
3 years ago
As a product moves into the market maturity stage of its life cycle, the marketing manager should:____.
fenix001 [56]

As a product moves into the market maturity stage of its life cycle, the marketing manager should expect the market to move toward pure competition.

Maturity is the time when sales start to plateau from the boom. At this point, companies start cutting prices to remain competitive in the face of increased competition.

Maturation occurs after introduction and growth. Maturity is the longest stage in the product life cycle. At this stage, sales growth starts to decline. The company reaches a high point in the demand cycle. and promotional strategies have minimal impact on revenue growth. December 20, 2021

Learn more about market maturity stage here: brainly.com/question/25754149

#SPJ4

5 0
2 years ago
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