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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

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3 years ago
Chad, who owns the only coffee shop in Rivercity, learns that Jose is about to open a competing coffee shop in the same small to
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Moreover, the offer by Chad is an antitrust and anti-competition consideration that is legally frowned upon. illegal contract

Explanation:

For a contract to be enforceable, it cannot be illegal.  A bribe is illegal.  The basis for the contract is illegal.  Therefore, Chad cannot sue Jose.  Since Jose decided to breach the contract, neither Chad nor Jose is entitled to any compensation.  Jose cannot be held liable for non-performance.

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3 years ago
Merits of itinerant traders<br>​
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Answer:

Explanation:

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2. Services to doorsteps: these retailers provides their goods and services at the doors of the customers.  For example: a vegetable seller sells vegetables at the doors of the customers .

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Answer:

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