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Anastasy [175]
3 years ago
11

Cullumber Company is considering buying equipment for $220000 with a useful life of 5 years and an estimated salvage value of $6

000. If annual expected income is $28000, the denominator in computing the annual rate of return is $226000. $110000. $113000. $220000.
Business
1 answer:
faltersainse [42]3 years ago
8 0

Answer:

Average investment(denominator) = $113,000

Explanation:

<em>Annual rate of return is the average annual income as a percentage of average investment . It is the proportion of the average investment that is earned, on the average, as annual income.</em>

Annual rate of return = annual net income/ average investment

Average investment =( Initial,cost + scrap value)/2

Average investment = (220,000 + 6,000)/2= $113,000

Average investment(denominator) = $113,000

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Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return
AysviL [449]

Answer:

The correct answer is letter "A": voidable.

Explanation:

Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.

Thus, <em>Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).</em>

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Identify and explain two dufference between the public sector and private sector
olga nikolaevna [1]

Public Sector: the part of an economy that is controlled by the government.

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3 0
3 years ago
The amount of amount of deadweight loss as a result of the tax is:______
klio [65]

Answer:

D. $5,000

Explanation:

This deadweight in a lot of cases are seen to occur especially when demand and supply are not in equilibrium and in and in the above scenario, it is pegged at $5000. Therefore sometimes consumers experience shortages, and producers earn but they'd otherwise.

Taxes are also seen in the creation of deadweight loss because they prevent people from engaging in purchases they'd otherwise make because the ultimate price of the merchandise is above the equilibrium value. If taxes on an item rise, the burden is commonly split between the producer and therefore the consumer, resulting in the producer receiving less cash in on the item and therefore the customer paying the next price.

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Use the following information for the Quick Study below. Skip to question [The following information applies to the questions di
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Answer and Explanation:

a. The computation of the internal rate of return is shown below:

Given that

The expected cash inlfows would be $9,400 for four years each

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Based on the above information

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= $30,455 ÷ $9,400

= 3.2399

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