Answer:
14.48%
Explanation:
The ARR is the quotient between the average income of a project over his investment cost.
The income will consider depreication and taxes.
We are given with the net income so, we should assueme are already included.
Frist step, calculate average net income.
$ 1,864,300,
+ $ 1,917 ,600
+ $ 1,886,000
<u>+ $ 1,339,500 </u>
$ 7,007,400 Total return
Now we divide by 4 because there is a total of 4 years
$ 7,007,400 / 4 = $ 1,751,850 Average income
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<u>Now we calculate the ARR</u>
average net income/ investment
1,751,850 / 12,100,000 = 0.144780992 = 14.48%
Answer:
Following are the solution to the given question:
Explanation:
A financial manager should understand adequate information on accountancy. This is irrespective of whether the business does have a trained counterpart.
Accountancy is a necessary input into the function of financial management. Throughout the extent, as accounts were important input in financial decision-making is closely connected with both the interaction between finance and financial.
Accrual analysis provides information mostly on the company's operations. The result of the accountancy is accounts like the income statement, the income statement, and the position financial adjustments report. The information in such statements helps money advisors assess a company's previous growth and career projections.
The purpose of accountancy in the choice process is to gather and provide financial data on the institution's past, present, and future activities.
During the economic transaction, the finance department uses these data. This is not possible for money advisors to collect data or to make choices from accounts. And an investor's primary focus is to collect data and display it, whereas budgeting, control, and judgment are the main job of a financial manager. In a sense, financial management starts at the end of accountancy.
As a person becomes more educated, the person may gain more money while working or applying to jobs and will gain more knowledge of their surroundings.
Answer:
1. $46,550
2. $405,000
3. $450,600
Explanation:
1. Computation of differential cost regarding the decision to buy the model 200
Differential cost = Cost of a new model 300 - Cost of a new model 200
Differential cost = $396,350 - $349,800
Differential cost = $46,550
So, the differential cost regarding decision to buy model 200 is $46,550.
2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.
3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.
