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
Ivenika [448]
3 years ago
10

Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p

er year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to
A. 17.5%
B. 20.0%
C. 25.5%
D. 35.0%
Business
1 answer:
Flauer [41]3 years ago
8 0

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return  using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

You might be interested in
Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Shee
lord [1]

Answer:

Southwestern Mutual Bank

This would increase the loans account and the deposit account by $100 respectively.

Explanation:

a) Data and Calculations:

Southwestern Mutual Bank

Balance Sheet

Assets                                    Liabilities and Owners' Equity

Reserves             $150          Deposits                         $1,200

Loans                 $600           Debt                                 $200

Securities           $750           Capital (owners' equity)  $100

Total assets     $1,500          Total liabilities + equity $1,500

New customer deposit = $100

New loans made by the owners = $100

3 0
2 years ago
The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market.
olasank [31]

Answer:

company's product line in the dog food market

Explanation:

In the description provided, it can be said that Prime Cuts will be an addition to the company's product line in the dog food market. A product line is a group of related products all marketed under a single brand name and are sold by the same company to the same targeted group of consumers. Such as in this scenario, all of the products listed are dog treats/food with different ingredients and are all sold by the same company to people looking for dog food.

4 0
3 years ago
290. Many states, in search of industries that are clean, fast-growing, and pay good wages to skilled workers, are trying to att
hammer [34]

Answer: C. clean and fast-growing and that pay

Explanation:

3 0
3 years ago
C&A sells T-shirts for $20 that cost $5 to produce. The annual holding cost percentage is 10% and the T-shirts turn 25 times
Angelina_Jolie [31]

Answer:

B. $0.02

Explanation:

The computation is shown below:

Since the annual holding cost percentage is 10% and the cost of production is $5. So, the holding cost would be

= $5 × 10%

= 0.5

Now if the t-shirts run 25 times a year, so the holding cost would be

= 0.5 ÷ 25 times

= $0.02

Simply we compute the holding cost based on number of times the t-shirt turns in a year

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
5 elements of Design for Delight?​
Nikitich [7]
Answer: The 5 elements of Design for Delight are going to start out with Delighting people.
4 0
3 years ago
Other questions:
  • On a production, possibly a curve, data points that fall outside of the curve represent
    7·1 answer
  • Which film sound is typically recorded during production?
    8·1 answer
  • You are negotiating to make a 7-year loan of $37,500 to Breck Inc. To repay you, Breck will pay $2,500 at the end of Year 1, $5,
    13·1 answer
  • Ventaz corp manufactures small windows for back yard sheds.​ historically, its demand has ranged from 30 to 50 windows per day w
    14·1 answer
  • Questions and Problems
    7·1 answer
  • In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. It emerged fro
    13·1 answer
  • The president of a consulting firm wants to minimize the total number of hours it will take to complete four projects for a new
    9·1 answer
  • The Wiley Oakly Company has just gone public. Under a firm commitment agreement, Wiley received $21.39 for each of the 7.75 mill
    14·1 answer
  • Your firm needs a computerized machine tool lathe which costs $51,000 and requires $12,100 in maintenance for each year of its 3
    15·1 answer
  • If a company decreases its sales price per unit, the new breakeven point will?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!