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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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Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
nevsk [136]

Answer:

8%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

Cash flow in year zero = $-165,000

Cash flow each year from year one to seven = $31,692

IRR = 8%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
3 years ago
Suppose the National Bureau of Economic Research (NBER) comes out with a report suggesting that the economy will soon dip into r
sweet [91]

Answer:

(D) The cyclical unemployment

Explanation:

Business activity is subject to the comings and goings of private initiative, so the expansion and recession phases of the economy affect the number of unemployed.

<u>Cyclical unemployment</u> increases considerably during times of recession, due to the deterioration of economic conditions; while decreasing in the stages of expansion, due to the improvement of the economy.

Governments try to reduce the incidence of this type of unemployment by softening the transition between different economic cycles. The objective is that the labor supply does not vary significantly between the stages of expansion and recession so that its demand is not excessively impaired.

3 0
3 years ago
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as ______ properties.
kolbaska11 [484]

Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as 140 (100%) properties.

<h3>What is a deed restriction?</h3>

This is the term that is used to refer to the written agreements that are done in order to restrict and limit activities that may go on in a property.

These are private agreements that are made. It has to be 100 percent on the properties.

Read more on deed restrictions here:

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4 0
2 years ago
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What type of budget is used to forecast income and expense over some period of years?
taurus [48]

A stabilized budget is used to forecast income and expense over some period of years.

<h3>What is A stabilized budget?</h3>

A budget that forecasts income and expenses over a short period of time, typically five years, is considered steady. a property's rent roll. can be used to calculate the potential annual rental income of a property.

After construction or a large refurbishment, the projected rental income, cost, or Net Operating Income Example: Stabilized income was predicted two years after an office building opened.

Thus, A stabilized budget is used to forecast income and expense

For more details about stabilized budget, click here:

brainly.com/question/12499375

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8 0
1 year ago
Your best friend just said that she isn’t going to college, because she cannot afford it. What would you tell her?
puteri [66]
I would suggest her to opt for scholarship programs that are offered by several colleges, there is a need based scholarship programs too.
7 0
2 years ago
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