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telo118 [61]
3 years ago
7

A company buys a machine for $79,000 that has an expected life of 4 years and no salvage value. The company uses straight-line d

epreciation. The company anticipates a yearly net income of $3800 after taxes of 16%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return
Business
1 answer:
Brums [2.3K]3 years ago
3 0

Answer:

4.81%

Explanation:

Accounting rate of return is the ratio of annual profit and initial investment made on an asset or project. It is expressed in the times value.

Formula for Accounting rate of return is as follow

Accounting Rate of return = Annual Profit / Initial Investment

Initial Investment = $79,000

Annual Profit = $3,800

placing values in the formula

Accounting rat of return = $3,800 / $79,000

Accounting rat of return = 0.0481

Accounting rat of return = 4.81%

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Which of the following is a reason advertising can be economically wasteful? Advertising provides consumers with price and quali
babymother [125]

Answer:

The most effective advertising is very expensive and, therefore, wasteful.

Explanation:

In order for something to be considered economically wasteful it must use and dispose money carelessly.

Therefore options:

  • Advertising provides consumers with price and quality information about products.
  • Advertising manipulates people's tastes and can reduce competition.

Do not apply since the options do not consider the costs of advertisement.

The only option that considers the cost of advertisement is: The most effective advertising is very expensive and, therefore, wasteful. It refers to the high costs of effective advertisement, and it implies that the money is not used carefully.

5 0
3 years ago
Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 year
Margarita [4]

Answer:

Bond M= $21,914.32.

Bond N= $6,131.14

Explanation:The price of any bond (or financial instrument) is the PV of the future cash flows. Even though Bond M makes different coupons payments,to find the price of the bond,we just find PV for the cash flows

5 0
3 years ago
Which of these roles is the highest ranking person in a company?
Rudiy27
What are the choices, if any?
In most companies, the highest corporate titles would be CEO, COO, Vice President, CFO and/or Manager.
5 0
3 years ago
Read 2 more answers
Monopolists want to protect their market position by – potential competitors. A common tactic is to lobby for –, such as –. Such
mixer [17]

Answer:

restricting the entry; trade restrictions; import tariffs; rent-seeking; monopoly

Explanation:

Monopolists want to maximize their profits by keeping the potential competitors out of the market. For restricting the entry of potential firms they adopt the practice of lobbying for trade restrictions which restrict entry. One such restriction is importing tariff which will reduce competition from foreign products. Such lobbying can be defined as a form of rent-seeking which means using political means to secure monopoly position.

8 0
3 years ago
Obama Company sells its product for $25 per unit. During 2012, it produced 20,000 units and sold 15,000 units (there was no begi
horrorfan [7]

Answer:

Unitary cost= $12

Explanation:

Giving the following information:

direct materials $5

direct labor $4

variable overhead $3

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the product unitary cost.

Unitary cost= 5 + 4 + 3= $12

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3 years ago
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