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lawyer [7]
3 years ago
15

Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled

machine. The new machine would cost $100,000 and would have a sixteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $10,000 per year to operate and maintain, but would save $40,000 per year in labor and other costs. The old machine can be sold now for scrap for $10,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
inn [45]3 years ago
5 0

Answer:

26.4%.

Explanation:

Net Profit:

= Saving of Labor & other Costs - Maintenance Cost of Machine -  Depreciation On Machine (100,000/ 16 years)

= $40,000 - $10,000 - $6,250

= $23,750

Initial Investment:

= Cost of new Machine - Salvage value of old machine

= $100,000 - $10,000

= $90,000

Simple Rate of Return = Net Profit ÷ Initial Investments

= $23,750 ÷ $90,000

= 0.264 × 100

= 26.4%

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A company reports the following: Net income $375,000 Preferred dividends 75,000 Average stockholders' equity 2,500,000 Average c
Anit [1.1K]

Answer:

a) The return on stockholders’ equity = 15%

b)  The return on common stockholders’ equity = 16%

Explanation:

a) Return on Stockholders’ Equity = (Net income)/(Average stockholders' equity)

= ($375,000)/$2,500,000

= 15%

b) Return on Common Stockholders’ Equity = (Net income - Preferred dividends) /(Average return on common stockholders' equity)

= ($375,000 - $75,000) / $1,875,000

= 16%

7 0
3 years ago
"Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal add
sp2606 [1]

Answer:

Direct-mail marketing

Explanation:

through the advent of technology, it is very easy to do marketing with the help of internet, phones, email e.t.c hence it is called Digital marketing.

Digital marketing has started becoming the current trends of business now a days where the seller and buyer makes transaction online without physical contact and the seller is bound to send the items to the address of the buyer and announce the delivery to that location.

A form of digital marketing which is Direct mail marketing involves sending an offer, announcement, reminder, or other item to a person by Post or mail.

This action has makes business very easy and profitable because there is no debt involves. there are so many companies involves in digital marketing e.g Jumia, Konga, Ebay, e.t.c.

3 0
3 years ago
If the U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the
prisoha [69]

ifthe U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.

Explanation:

answer would be 210

4 0
3 years ago
Below are five explanations for differences in compensation: winner-take-all (WTA), human capital (HC), occupational crowding (O
Hoochie [10]

Answer:

See explanation

Explanation:

1. The average base pay for a UPS driver is $27.83 an hour, whereas the average base pay for a FedEx driver is $22.83 per hour. = Efficiency wages (EW)

Efficiency wages refers to the above-market wages that are paid by employers so as to motivate their employees and improve productivity.

2. An attractive waitress earns more tips than do others. = Human capital (HC)

Human capital refers to the stock of knowledge, habits, skills and personality attributes that are embodied in individuals which make them produce economic value

3. An engineer working on an offshore oil- drilling rig earns $100,000. An engineer working at an onshore oil drilling location earns $70,000

= Location and lifestyle

Some jobs involves more risk than other jobs. In this case, an onshore project will be paid less than offshore workers.

4. Nick Saban, the head coach of the University of Alabama football team, earns a salary of $8.3 million. The head coach at Georgia State University earns just over $500,000 = Winner takes all.

7 0
3 years ago
Harriet operates a coffee shop. One of her customers wants to buy two kinds of​ beans: Arabian Mocha and Colombian Decaf. If she
melomori [17]

Answer:

it will purchase

96 dollars of Arabian Mocha

and 48 dollars of Colombian Decaf

Explanation:

we build the equation system:

144 = x  + y \\ x = 2y

we replace the second expression on the first and solve for y

144 = (2y) + y

144 = 2y + 1y

144= 3y

144/3 = y

48 = y

now we solve for x

x= 2y

x= 2 times 48 = 96

6 0
3 years ago
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