The accounting rate of return for this investment given its income, cost of the machine and the salvage value is 8.05%.
<h3>What is the accounting rate of return?</h3>
The accounting rate of return is a capital budgeting method used to determine the level of profitabiliy of an investement.
Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
Average book value = (59700 - 7500) / 2 = $21,600
Accounting rate of return = $2100 / 21600 = 8.05%
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True. Because they have access to the defense.
101
x 9
-------
909
Thats how ill explain how to solve that problem.
Answer:
A fully rented apartment building
Explanation:
Capital assets are a term that describes substantial portions of property including homes, cars, stocks, bonds, etc. In other words, specifically in business, a capital asset is defined by its valuable life which is extended than a year and is not planned for sale at a typical period of business's operation.
Hence, in this case, the right answer is A fully rented apartment building
Answer: $160,000
Explanation:
Given the following:
Par value = $100
Rate of Dividend = 8% = 0.08
Number of shares = 10,000
Preferred Dividend is calculated thus:
Par value * rate of Dividend × number of preferred stock
$100 × 0.08 × 10,000 = $80,000
Since year 4 Dividend wasn't paid
Total year 5 Dividend equals:
(Year 4 Dividend + year 5 dividend)
$(80,000 + 80,000) = $160,000
