Answer:
(i) $3,200
(ii) $7,100
(iii) $5,440
Explanation:
Cost of equipment = $35,500
Service life of equipment = 10-year
After 10-year equipment will be worth = $3,500
Equipment used for = 10,000 hours
Super Saver used the equipment for = 1,700 hours
1.
Depreciation expense:
= (Cost of equipment - Equipment worth after 10 years) ÷ Service life
= (35,500 - 3,500) ÷ 10
= $3,200
2.
Depreciation expense:
= Cost of equipment × Double-declining rate
= 35,500 × 20%
= $7,100
3.
Depreciation expense:
= (Cost of equipment - Equipment worth after 10 years) ÷ (Total hours × Hours taken by super saver)
= (35,500 - 3,500) ÷ (10,000 × 1,700)
= $5,440
Answer:
The expected rate of return on this investment is:
21%
Explanation:
Cost of computer = $200,000
Annual cash flows for 5 years = $48,271
Total cash flows = $241,355 ($48,271 x 5)
Returns = $41,355 ($241,355 - $200,000)
The expected rate of return = Returns/Costs * 100
or the average of returns and the average of investments (they yield the same results)
Using the total returns and investment:
= $41,355/$200,000 * 100
= 21%
Using the average returns and investment:
= $8,271/$40,000 * 100
= 21%
Answer:
Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. ... Before a plan can be implemented, managers must organize the assets of the business to execute the plan efficiently and effectively.
Answer:
His return on investment is negative 8.7%
Explanation:
Thomas purchased 2,500 shares of EKK at $54 per share (=$135,000 / 2,500).
He received $750 (= $0.30 x 2,500) in annual dividends.
He sold his 2,500 shares at $49 per share = $122,500
The total amount of money he received from his investment is $122,500 + $7
50 = $123,250, then we divide that by $135,000 = 0.913 - 1 = -8.7%
There is not enough information to determine which firm to buy.
Answer: Option C
<u>Explanation:</u>
In the question above, only the profit margin of both the firms are given, but only on these basis, it cannot be decided which firm to be bought. A lot of other things are to be kept in mind while taking into consideration the decision of buying a fir.
Even if both the firms are working in the equilibrium condition which is the condition of MR = MC, then also it can not be decided, which one firm to buy.
