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
BARSIC [14]
3 years ago
15

Gunslinger Company is considering the purchase of pipe cutting equipment. Data on the equipment are as follows: Original Investm

ent $35,000 Net Annual Cash Inflow $8,000 Expected Economic Life in Years 5 The Company uses the straight-line method of depreciation with no mid-year convention. What is the accounting rate of return (ARR) on original investment
Business
1 answer:
NeX [460]3 years ago
4 0

Answer:

4.86%

Explanation:

 The formula to compute the accounting rate of return is shown below:

= Annual net income ÷ original investment

where,

Average  Accounting Income is

= Annual Cash Inflow – Depreciation

= $8,000 - $6,300

= $1,700

The Depreciation is

= ($35000 - $,3500) ÷ 5 years

= $6,300

And, the original investment is $35,000

So, the accounting rate of return is

= $1,700 ÷ $35,000

= 4.86%

We simply applied the above formula

You might be interested in
Given that Jacob's Chocolates Company had beginning retained earnings of $4,000; net income during the period of $10,000; and di
natta225 [31]

Answer:

C. $13,700

Explanation:

Given that;

Beginning retained earnings = $4,000

Net income during the period = $10,000

Dividends = $300

Computation of Ending balance in the retained earnings account

= Beginning retained earnings + Net income during the period - Dividends

= $4,000 + $10,000 - $300

= $13,700

Therefore, the ending balance in the retained earnings account is $13,700

5 0
3 years ago
- A negative monthly balance indicates that:
GrogVix [38]

Answer:

Someone owes you money

Explanation:

negative balance simply means that your card issuer owes you money,

7 0
3 years ago
How to estimate elasticity?
andrezito [222]
The formula for calculating elasticity is: Price Elasticity of Demand=percent change in quantitypercent change in price Price Elasticity of Demand = percent change in quantity percent change in price .
7 0
3 years ago
Jane must do a system each evening to copy and archive computer data that could be used if a compromise occurs
svetlana [45]
Jane must do a system each evening to copy and archive computer data that could be used if a compromise occurs. The process that Jane makes is referred to as back up. Back up process is the process of copying and archiving computer data so that the duplicate files can be used to restore the original data if a compromise occurs. 
8 0
3 years ago
The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the e
Alja [10]

Answer:

Explanation:

interest rates on a three-year bond =(int in year1+int in year2+int in year3)/n =  (3+4.5+6)/3 =4.8%

interest rates on a six-year bond = (3%+4.5%+6% +7.5%+ 9%+ 10.5%)/6 = 7.35%

interest rates on a nine-year bond = (3%+4.5%+ 6%+ 7.5%+ 9%+ 10.5%+ 13%+ 14.5%+16%)/9 =10.23%

So, int rate on a 3 year bond is 4.8%; on a 6 year bond is 7.35%; on a 9 year bond 10.23%

5 0
3 years ago
Other questions:
  • Yes music is the authorized distributor for products of trompa instruments, a popular manufacturer of trumpets and other brass i
    14·2 answers
  • When Sewsavor developed a food delivery application, a majority of people started using and recommending the application. Howeve
    8·1 answer
  • The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Swee
    7·1 answer
  • The last dividend paid by Klein Company was $1.00. The stock’s dividend growth rate is expected to be a constant 5 percent for 2
    12·1 answer
  • Acme Enterprises just bought a new manufacturing machine. Which of these costs should be capitalized? (Check all that apply.)
    15·1 answer
  • The stock in Pal-Maine Foods has a beta of .85. The expected return on the market is 11.50 percent and the risk-free rate is 2.8
    9·1 answer
  • 16. A type of card that allows the card holder to spend a certain amount of money without ever having to pay it back?
    11·1 answer
  • Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses durin
    6·1 answer
  • The most recurring item on a data list
    9·1 answer
  • If idle resources are put to use and more output is produced in an economy, there will be:____.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!