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Readme [11.4K]
3 years ago
10

The method of analyzing capital investment proposals that divides the average annual income by the initial investment is:a.accou

nting rate of return method b.cash payback method c.internal rate of return method d.net present value method
Business
2 answers:
Leno4ka [110]3 years ago
6 0

Answer:

A. Accounting rate of return method

Explanation:

Accounting rate of return method (ARR) is used to express the expected rate of return on an investment. It describes assets as compared to initial investment cost. A pitfall to the ARR method is that it doesnt consider cash flow or the time value of money.

Mathematically, it is calculated as

ARR = Average annual income/initial investment

Where

ARR = Accounting rate of return.

ARR helps us in determining the profitability of an investment.

iren [92.7K]3 years ago
4 0

Answer: Accounting rate of return

Explanation:

The accounting rate of return is the percentage rate of return that is expected on an asset or investment as compared to the initial investment cost of the investment.

In an accounting rate of return, the average revenue from an asset.is divided by the company's initial investment in order to derive the ratio or the return that can be gotten over the lifetime of the investment or asset. The accounting rate of return does not consider cash flows or the time value of money.

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The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. Th
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Answer:

The company should order 100 units to minimize total inventory cost.

Explanation:

Given,

Annual Demand, D = 2,000 units

Order cost, S = $20

Purchase cost = $40

Holding cost, H = Purchase cost x percentage of holding cost

Holding cost = $40 × 20%

Holding cost = $8

We know, the company should order the highest number of products with a minimum cost, and for that, the company uses economic order quantity. Hence,

Economic Order Quantity (EOQ) = \sqrt\frac{2*D*S}{H} }

EOQ = \sqrt \frac{2*2,000*20}{8}

EOQ = \sqrt{10,000}

EOQ = 100

8 0
3 years ago
Which is a business likely to need to secure startup capital from a venture capitalist?
EleoNora [17]
Any business that is in the tech business, where massive amounts of money go for development and for producton are companies that are very likely to need startup capital from some sort of investor; in this case it can be a venture capitalist but it can also be any other type of investor. 
4 0
3 years ago
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Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did n
Scorpion4ik [409]

Answer:

flank attack

Explanation:

Based on the scenario being described within the question it can be said that this is an example of a flank attack. This is the marketing strategy that focuses on attacking the different weak points of the competitors in the market. Which is what Colgate is doing by focusing on the one aspect that Pepsodent has not targeted in order to overtake all of their market share on their newly launched product.

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3 years ago
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Phi Upsilon Nu, a student social organization, has two different locations under consideration for constructing a new chapter ho
Elza [17]

Answer:

Phi Upsilon Nu

The total annual costs for the Alpha Ave. location with twenty persons living there is:

= $9,000.

Explanation:

a) Data and Calculations:

ANNUAL OPERATING COSTS

LOCATION   FIXED        VARIABLE                Total Costs

Alpha Ave.  $5,000      $200 per person     $9,000 ($5,000 + $200 * 20)

Beta Blvd.   $8,000       $150 per person     $11,000 ($8,000 + $150 * 20)

b)The variable cost of each location varies according to the number of persons living there and the rate incurred per person.  The fixed cost does not vary, at least, with the relevant range for either location.  When the total variable costs are computed, these are added to the fixed cost to obtain the total costs.  Then there is a comparison of the two locations to determine the location with the least total costs.

7 0
3 years ago
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
miskamm [114]
I think A, but I’m not sure.
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3 years ago
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