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 following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year as
Elis [28]

Answer:

Current year = 204%

Prior year = 100%

Explanation:

Detailed solution is given below

4 0
3 years ago
Nathaniel is delivering a presentation when an audience member asks a question. Nathaniel answers her question and then says, “W
nordsb [41]
D. Because he is listening to her fully and making sure he fully understands what she is asking
4 0
2 years ago
Match the terms with their descriptions. Customer Inquiry Quotation Customer Purchase Order A. An agreement to purchase the stat
REY [17]

Answer:

matched as below

Explanation:

A. An agreement to purchase the stated material, for the stated price, under the stated terms..<u>.Customer Purchase Order.</u>

A purchase order represents instructions contained in an order document given out by a customer to business to deliver the goods specified in the order. The customer has committed to buy the goods stated in the order. A customer will prepare a Customer purchase order based on a quotation provided by a business.

B. It spells out the availability and prices of the materials specified in the inquiry. It is prepared by the sales department. ..<u>Quotation.</u>

A quotation is a document prepared by a company detailing the availability of specified good or services and their prices. A quotation will be issued in response to an inquiry from a customer.  The sales department prepares the document in consultations with the stores department.

C. A request for information about the availability and prices of the products that a customer is interested in...<u>Customer Inquiry</u>.

A Customer Inquiry is a document that specifies items or services that customer would wish to buy from the business. The customer seeks to know if the company deals with specific products, their prices and availability.

5 0
3 years ago
You’ve just secured a new client in your accounting practice, Peter's Pool Corporation (PPC), a brand new small business special
WINSTONCH [101]

Answer: just give what u know the business is small so it can’t manage

Explanation:

8 0
3 years ago
Some of the considerations you might use to analyze the data include
Semenov [28]
B characteristics of the children etc
6 0
3 years ago
Other questions:
  • A man purchased a magazine at the airport for $ 2.79 . The tax on the purchase was $ 0.15 .What is the tax rate at the​ airport?
    9·1 answer
  • Suppose you have a balance of $3000 on a credit card. Using the formula from Part G, consider the following scenarios:
    6·1 answer
  • When an economist says that a currency has become stronger he or she means that?
    8·2 answers
  • A permanent decline in the market value of an asset is called
    7·1 answer
  • Which is not one of the pressing issues facing the future of delinquency prevention?
    11·1 answer
  • If a good that generates negative externalities were priced to take these negative externalities into account, its A. price woul
    14·1 answer
  • Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit.
    5·2 answers
  • A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machi
    11·1 answer
  • In reference to auto insurance, what is gap coverage<br>​
    7·2 answers
  • Explain 3 factors that change supply elasticity.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!