1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kotegsom [21]
3 years ago
6

Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by

$140,000 and will increase annual expenses by $88,000 including depreciation. The oil well will cost $465,000 and will have a $10,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 12.47.)
Business
1 answer:
Alexeev081 [22]3 years ago
4 0

Answer: Annual rate of return = 21.89%

Explanation:

Given that,

Expected increase in annual revenues by = $140000

Expected increase in annual expenses by =  $88,000 including depreciation

Cost of oil well = $465,000

salvage value at the end of its 10-year useful life = $10,000

Expected Income = Expected increase in annual revenues - Expected increase in annual expenses

= 140000 - 88000

=$52000

Average investment = \frac{465000+10000}{2}

= $237500

Annual rate of return = \frac{Expected\ Annual\ Income}{Average\ Investment}

= \frac{52000}{237500}

= 21.89%

You might be interested in
The _________ of Office Depot includes Amazon, where many people order office supplies, as well as manufacturers of office suppl
Komok [63]

Answer:

Task Environment

Explanation:

Task environment is an external environment that affects an organization's ability to achieve its business goals. We could say that any type of  business or customer relationship directly with an organization has the ability of being the  part of the business environment. We could count some examples to the mission environment sectors : competitors, customers, suppliers, and labor supply.

3 0
3 years ago
Read 2 more answers
I NEED HELP ASAP please
JulsSmile [24]
Auto Loan - installment, secured, fixed

Credit Cards - installment, unsecured, CBE

Mortgage - installment, secured, variable

Payday loan - CBE, secured, and CBE

Personal loan - installment, unsecured, CBE

Small businesses - CBE, unsecured, CBE

Student loan - installment, unsecured, CBE

I believe that’s right. I’m so sorry if it isn’t.
6 0
3 years ago
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,338. FICA tax for S
deff fn [24]

Answer:

$1,057.86

Explanation:

Payroll taxes include:

  • Social security tax withholdings 6.2% (on the first $132,900 of wages paid) = 6.2% x $8,338 = $516.96
  • Medicare tax withholding 1.45% = 1.45% x $8,338 = $120.90
  • Federal unemployment taxes (FUTA)  0.6%  = $7,000 x 0.6% = $42
  • State unemployment taxes (SUTA) 5.4% = $7,000 x 5.4% = $378

total payroll taxes = $1,057.86

4 0
2 years ago
Honda has developed aluminum car bodies that are 100% recyclable and light enough to help conserve fuel. What kind of response i
andreyandreev [35.5K]

Answer:

b. Proactive

Explanation:

Proactive response is a corporate response in which the corporate anticipates or identifies the problem and develops ways and methods to reduce the impact or eliminate the problem.

Here in the question development of recyclable aluminium car bodies will actively help in reducing the demand of the fresh aluminium.

Also,

the reduction or the conserving of fuel will help reducing the fuel demands which is among the major source of CO₂

6 0
3 years ago
To explain the analogous relationship between the trail and the hike to the plant and inventory Alex makes the following stateme
wariber [46]

Answer:

True

Explanation:

In industry, inventory buildups are cancelled with increased sales and marketing activities, which attract rewards and punishments.  This is why it is always a taboo to observe idle workers.  Idle workers cost the entity much in expenses.  Workers are employed based on productivity and profitability indexes.  There is no business entity that employs workers for the fun of employment.

5 0
3 years ago
Other questions:
  • HELP ASAP!! What process includes sending rough drafts to the client for approval?
    14·1 answer
  • With regard to compensation in cooperative sales, the____________ broker will be the person who handles the commission splits fo
    6·1 answer
  • The net income reported on the income statement for the current year was $295,000. Depreciation recorded on fixed assets and amo
    6·1 answer
  • When the carrying cost of inventory is expressed as a percentage: A. it is usually the same as the borrowing cost of the organiz
    14·1 answer
  • A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Revenue $ 2,000,000 Less: Variable
    10·1 answer
  • When used in a speech introduction, telling a story, asking a question, making a startling statement, and arousing curiosity are
    5·1 answer
  • You work for an advertising agency. You have been assigned to come up with an advertising campaign for a new brand of designer w
    6·1 answer
  • Find the effective rate of interest to the nearest hundredth percent if $60.94 is earned in one year on a deposit of
    6·1 answer
  • The managers at Camphor Plastics decided that their firm needed to diversify because of overall falling sales and lower performa
    12·1 answer
  • Producing or associated with the generation of pus is:_________
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!