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BARSIC [14]
3 years ago
13

Omaha Plating Corporation is considering purchasing a machine for $1,300,000. The machine is expected to generate a constant ope

rating income of $140,000 per year for 18 years. The firm will use straight-line (SL) depreciation for the new machine over 14 years with no residual value. What is the estimated accounting rate of return (rounded to two decimal places) on the initial investment?
Business
1 answer:
levacccp [35]3 years ago
5 0

Answer:

The accounting rate of return is 5,21 %

Explanation:

To determine the Accounting Rate of Return we first need to determine the depreciation amount. Depreciation will be 1300 000.

Annual operating income is given at 140000 x 18 = 2520 000

Our accounting profit over the 18 years will be 2520 000 - 1300 000 = 1220 000.

Annual accounting profit will be 67777,78 ( 1220000/18)

We work out the average as there are 4 years of income without any depreciation. thus using a ARR of 1 year figure will be inaccurate.

ARR = 67777,78 / 1300000 x 100%

        = 5,21 %

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Answer:

European colonization devastated the lives of Native Americans in the US. Currently about 5 million native Americans live in the US, while the total US population is 329.45 million (roughly 1.5%). The vast majority of Native Americans (78%) currently live in Oklahoma, Arizona, and California. none of these states was a part of the original American colonies so that can give us an idea that the general policy taken by European colonists was to wipe them out.

In the US, Native American societies were not as advanced as those societies in Mexico and Central America (Aztecs and Mayans), or the Incas in South America. At first European colonists didn't confront the Native Americans directly since they actually received a lot of help from them (remember Thanksgiving).

But as American colonies started to grow and develop, Native Americans became a problem because no one likes to be thrown out of their homes, so conflicts started.

Spanish colonists had a religious view on Native Americans and they tried to convert them to Christianity after they took everything that they considered valuable from them. Mexico which is also part of North America, currently has a very large Native American and mestizo population (combined 90%).

On the other hand, British and Dutch colonists took a different approach and once the Native Americans were not useful anymore, they basically killed them all (or the vast majority).

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3 years ago
Why hasn't globalization benefited the majority of the world's underdeveloped countries?
irinina [24]
I think it’s A or B not sure tho
8 0
4 years ago
Sunk costs: are the losses which have already been incurred and which are unrecoverable. are the losses associated with failed b
ASHA 777 [7]

Answer:

are the losses which have already been incurred and which are unrecoverable. 

Explanation:

Sunk costs are costs that have already been incurred and are not unrecoverable. They are not considered in future decision making.

Total cost is the sum of fixed and variable cost.

I hope my answer helps you

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In a market​ system, how does society decide what goods and services will be​ produced?
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All of the following are assumptions of cost-volume-profit analysis except a.the sales mix is constant. b.costs can be divided i
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Answer:

d. within the relevant range of operating activity, the efficiency of operations can change.

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Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;

1. Sales price per unit product is kept constant.

2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.

3. All the units produced are sold i.e there is no change in inventory quantities during the period.

5. The costs accrued are as a result of change in business activities.

6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.

<em>Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.</em>

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