Answer:
ROI (Return on Investment) measures the gain or loss generated on an investment relative to the amount of money invested.
Explanation:
ROI = (Net Profit / Cost of Investment) x 100
Example: Investment = $100 Net Profit: $30
ROI : (30/100) x 100 = 30%
Answer:
C) 4.2 years
Explanation:
The computation of the payback period is as follows;
As we know that
Payback Period = Initial cost ÷ Annual net cash flow
Here
Initial cost = $278000
Annual net cash flow = Incremental after tax + Depreciation per year
where,
Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life
= ($278,000 - $30,000) ÷ 8 years
= $31,000
Annual net cash flow is
= $35000 + $31000
= $66000
So,
Payback Period is
= $278000 ÷ $66000
= 4.2 Years
Answer:
4.86%
Explanation:
Given that,
First-class postage for a 1-ounce envelope = 4 cents
On August 1, 2007
A first-class stamp for the same envelope cost = 41 cents
Period, n = 49 years
i = 1.0486 - 1
= 0.0486 or 4.86%
Therefore, the interest rate is 4.86%.
Answer:
a.$5 per direct labor hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $100,000 ÷ 20,000 direct labor hours
= $5 per direct labor hour
Simply we divide the total estimated manufacturing overhead by the estimated direct labor hours so that the correct rate can come
All other information which is given is not relevant. Hence, ignored it
Answer:
Estimated manufacturing overhead rate= $40 per direct labor hour
Explanation:
Giving the following information:
This period's estimated overhead cost is $100,000 and an estimated direct labor cost of $50,000 and 2,500 direct labor hours.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 100,000/2,500= $40 per direct labor hour
