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
Harlamova29_29 [7]
3 years ago
12

Tu Corporation is investigating automating a process by purchasing a machine for $423,000 that would have a 9 year useful life a

nd no salvage value. By automating the process, the company would save $112,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $27,000. The annual depreciation on the new machine would be $47,000. The simple rate of return on the investment is closest to:
A. 15.4%
B. 16.4%
C. 26.5%
D. 11.1%
Business
1 answer:
raketka [301]3 years ago
5 0

Answer:

simple rate of return = 16.4 %

so correct option is B. 16.4%

Explanation:

given data

purchasing a machine = $423,000

useful life =  9 years

cash operating costs = $112,000 per year

yielding = $27,000

annual depreciation = $47,000

to find out

simple rate of return on the investment

solution

we get here simple rate of return on the investment that is express as

simple rate of return = \frac{annual\ incremental\ net\ operating\ income}{initial\ investment}    .............................1

put here value we get

simple rate of return = \frac{112000-47000}{423000-27000}

solve it we get

simple rate of return = 16.4 %

so correct option is B. 16.4%

You might be interested in
The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n
fgiga [73]

Answer: $1.50

Explanation:

Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.

We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

8 0
3 years ago
Carter invested $3,900 in an account paying an interest rate of 3. 9% compounded daily. Assuming no deposits or withdrawals are
denis23 [38]

$822.18 is how much earned interest so add $3,900 and you get $4,722.18

6 0
3 years ago
An unsecured loan is one which you:
Zielflug [23.3K]

Answer:

B.

Explanation:

You do not need collateral to be given an unsecured loan.

3 0
3 years ago
50 POINTS AND BRAINLIEST
Vikentia [17]

Answer: sorry i took long

3. the time lost looking at both items

4. The cost of growing peppers, compared to the cost of growing tomatoes.

5.The net value to Kendra of going to Samuel's house to play games.

6. $150

9. The producers decide what should be produced.

10. Producers decide what should be produced.

11. property rights - producers can own or rent the building they manufacture in

12. A student learns to make web pages and starts making websites for local small businesses.

13. a personal computer or tablet used to access the internet

14. the decrease of pollution in the city

4 0
2 years ago
The authentication classification method of Personal Characteristic is most closely described as a:
notsponge [240]

Answer:

The correct answer is letter "C": Fingerprint, voiceprint, signature, or hand size.

Explanation:

Different financial and governmental institutions requests individuals enrolled to authenticate themselves so their records will not be confused with someone else's. For that purpose, the <em>authentication classification method of Personal Characteristics</em> takes the individual's fingerprint, voiceprint, and signature. In correction centers, even the hand size is necessary as long as some other inmate special features -tattoos, for instance, so that person's information can be shared with some other bureaus, if necessary.

8 0
3 years ago
Other questions:
  • The rules for interpreting, categorizing, recording, and transferring the data to the data storage media are called _____.1.edit
    15·1 answer
  • Bram buys a bulldozer from construction equipment corporation, which he leases to earth movers, inc. in this situation, the less
    11·1 answer
  • A stock is a written promise to repay borrowed money at a later date; to raise money.
    7·1 answer
  • You want to purchase a new car, and you are willing to pay $24,158. If you can invest at 10% per year and you currently have $15
    10·1 answer
  • PLEASE HELP!!!!!!! - (see attachment )<br>Principles of account question
    5·1 answer
  • The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next
    12·1 answer
  • According to Dr. Powe, business ideas are worthless unless they become?
    10·1 answer
  • ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eg
    9·1 answer
  • In Year 1, Costello Company performed work for a customer and billed the customer $12,000. In Year 2, the customer pays Costello
    14·1 answer
  • Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!