1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Luda [366]
3 years ago
5

Farmer Joe is planning to purchase a new hog farm. He anticipates making $20,000 the first year, $25,000 the second year and $30

,000 the third year. The farm is currently listed for sale at $200,000. What is the simple rate-of-return on the original investment?
Business
1 answer:
Pachacha [2.7K]3 years ago
6 0

Answer:

The simple rate of return is 37.5%

Explanation:

Simple rate of return is the percentage of return on investment that takes the net annual return cash flow of an investment and compare with initial capital of the investment. It is calculated with this formula:

<u>Total annual return - Depreciation expense</u>

                Initial capital outlay

For farmer Joe, the simple rate of return is:

<u>$20,000 + $25,000 + $30,0000 -$0</u>     x   100

                    $200,000

=   <u>$75,000</u>  x 100

   $200,000

= 37.5%

Depreciation expense is assumed to be zero.

You might be interested in
Presented below is net asset information related to the Marin Division of Santana, Inc.MARIN DIVISIONNET ASSETSAS OF DECEMBER 31
BartSMP [9]

Answer:

The impairment loss of $161m is jounalized below:

Account Debit Credit

                                $m         $ m

Loss on impairment 161.00  

Goodwill                               161.00

Being impairment recorded  

The impairment test on Marin division of Santana that gave rise to impairment loss of $161 m found in the attached spreadsheet

Explanation:

Please note excel formula used in each cell.

Download xlsx
8 0
2 years ago
ABC has the following information for the current year: Budgeted indirect costs are $4,000, the budgeted allocation base is 2,00
Marrrta [24]

Answer:

$2 per hour

Explanation:

<u>Given</u>: Budgeted indirect cost $4000

           Budgeted allocation base ; 2000 hours

           Actual indirect costs incurred: $4200

           Actual allocation base : 2050 hours

Standard rate for allocation of indirect cost = Budgeted indirect cost/Budgeted allocation base

= $4000/2000 hrs

= $2 per hour

Budgeted or standard indirect cost rate refers to the estimated indirect cost rate which is arrived at by dividing budgeted expenses by budgeted allocation base i.e budgeted hours here.

8 0
3 years ago
A bank has excess reserves of $1,000,000 and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by h
lianna [129]

Answer:

Money supply increase=500000/10%=5000000

Explanation:

3 0
3 years ago
Preferences are characterized generally by: A. income. B. consumption bundles. C. indifference curves. D. budget constraints.
damaskus [11]

Answer:

B. consumption bundles

Explanation:

Customer preference is defined as the likes and dislikes that a customer has that determines his choice in making purchases.

For exams a customer may want to buy shoes that are black in colour, but shoes that are yellow in colour are ignored.

Preferences of buyers are independent not prices and income level.

Rather it is dependent on consumption bundle. That is the set of goods that will give highest satisfaction to the buyer.

4 0
2 years ago
Which one of the following should earn the most risk premium based on CAPM?
Nina [5.8K]

Answer:

The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.

The correct answer is B

Explanation:

A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.

A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.

A stock with a beta of 0.74 does not provide the highest risk premium.

Us treasury bill does not provide any risk premium since it is the risk-free rate.

A portfolio with a beta of 1.01 does not produce the highest risk premium.

5 0
3 years ago
Other questions:
  • Which element of the promotional mix has the inherent weakness of high absolute costs and an inability to obtain direct feedback
    8·1 answer
  • Randy is shopping for an all-in-one printer/copier/scanner/fax machine. he decides to purchase a certain model because it has th
    13·1 answer
  • In a round-robin tournament, every two distinct players play against each other just once. For a round-robin tournament with no
    15·1 answer
  • When a customer purchases merchandise inventory from a business organization, she may be given a discount which is designed to i
    14·1 answer
  • Suppose, you sold an apartment house by accepting $1,000,000 down and monthly payments of $15,000 per month for 10 years. You pl
    9·1 answer
  • Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling
    14·1 answer
  • Select the correct answer.
    8·2 answers
  • Yesterday, Bob and Maria were not willing to trade $40 for book. Today, they are. What made the difference?
    10·1 answer
  • 30 pts!! Easy please help!! I’ll mark brainliest!!!!
    12·1 answer
  • Greg Winston has gone bankrupt and started a lemonade stand. He has invested $400 in lemonade equipment, and he sells a glass of
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!