Answer:
345,000
Explanation:
accounting rate of return:
The average investment will be the average between the ending and beginning book value of the investment:
In this case, the acquisition of the software and his salvage value at the end of the useful life.
( 630,000 + 60,000 ) / 2 = 345,000
Answer:
EAR for First national Bank = 13.92 %
EAR for First United Bank = 13.85 %
Explanation:
given data
First National Bank charges = 13.1 percent
compounded monthly , 1 year = 12 month
First United Bank charges = 13.4 percent
compounded semiannually , 1 year = 2 semiannually
solution
we get here first EAR for First national Bank that is express as
EAR for First national Bank = .....................1
here r is rate and n is month
so put here value
EAR for First national Bank =
EAR for First national Bank = 13.92 %
and
EAR for First United Bank is
EAR for First United Bank = ..................2
here r is rate and n is semi annually
EAR for First United Bank =
EAR for First United Bank = 13.85 %
here First United bank EAR is less