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
Leokris [45]
2 years ago
12

The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of $2

4,000, would be replaced by a new machine. The new machine would be purchased for $468,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $161,000 per year in cash operating costs. The simple rate of return on the investment is closest to__________.
Business
2 answers:
julia-pushkina [17]2 years ago
7 0

Answer:

The simple rate of return on investment is 17.73%

Explanation:

The simple interest rate of return on the investment can be calculated by the formula given thus:

Simple rate of return=net income/investment

The net income =savings in operating costs less depreciation

Savings in operating costs =$161000

depreciation=cost -salvage value/number of years

Depreciation=468000-0/6=$78000

Net income=$161000-$78000

Net income=$83000

Simple rate of return =83000/468000

                                    =17.73%

madreJ [45]2 years ago
3 0

Answer:

Simple rate of return = 17.7%

Explanation:

Simple rate of return = incremental operating income ÷ initial investment

Depreciation = $468,000 ÷ 6years = $78,000

incremental operating income = $161,000-$78,000 =$83,000

Simple rate of return = $83,000÷$468,000=17.7%

You might be interested in
Great Britain, Denmark, and Sweden have stayed out of the euro zone because of the Multiple Choice dollar peg advocated by some
solong [7]

Answer:

implied loss of national sovereignty to the European Central Bank

Explanation:

Unlike France, that has adopted the Euro as its currency, Great Britain, Denmark and Sweden have all decided to stay out of the Euro zone. This is because accepting the Euro as their currency will mean that the European Central Bank, through the Euro, has power over their economies as a result of exchange.

Also, staying away from the Euro zone means that the European central bank doesn't have control of  their monies among other things.

Cheers

6 0
2 years ago
What two possible reasons could cause the required return to differ from the coupon interest​ rate? ​(Select the best answer​ be
mixas84 [53]

Answer:

A. Cost of funds has changed

B. Firm's risk has changed

Explanation:

The required rate of return on bonds refers to an investor's expected rate of return which is based upon rate of return other investors earn in the market on similarly priced bonds. This is also referred to as yield to maturity i.e YTM.

Coupon rate of payment of bond is the interest payment on such bonds which is usually fixed at the time of issue of such bonds.

Required rate of return may differ on account of change in cost of funds to the issuer which is cost of debt denoted as K_{d} . Cost of debt is determined by tax rate and net proceeds from the issue of such bonds.

Required rate of return may also change on account of change in the firm's risk. If the firm assumes more risk, such risk would deter investors from investing in such bonds and in such scenario, the firm has to offer higher coupon rate than the rate prevailing in the market to attract the investors.

5 0
2 years ago
We discussed the invasions of the Roman world by various Germanic tribes in the fifth century and the Arab-Islamic conquests of
EleoNora [17]

Answer:

The invaders were able to govern the more advanced civilizations because they adopted most of the conquered civilizations' customs, rules of governance, and even languages and religion.

For example, in the case of the Germanic tribes that conquered the Western Roman Empire, the rulers adopted, one by one, the religion of the Roman Empire: Christianity, more specifically, the Roman Catholic variant.

They also began to use the language of the Empire: Latin, for ecclessiastical and political matters, and while political institutions did change a lot, some of the political institutions of the Empire did survive in the sucessor states that the Germanic rulers carved out of the Roman territory.

7 0
2 years ago
During the 1920s, more people began to acquire shares of stock using
oksian1 [2.3K]

Answer:

Wait in line before trading

Explanation:

1920s stock brokerages. When a normal person wanted to buy or sell shares, they had to run to the next broker and sometimes wait in line before making their trade.

7 0
2 years ago
Read 2 more answers
The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc
Alekssandra [29.7K]

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

3 0
3 years ago
Other questions:
  • Which type of shark has the largest estimated population in the world?
    14·1 answer
  • A manufacturing company hit by a slump in demand is experiencing a labor surplus. The company expects the market to improve in s
    6·1 answer
  • Suppose that jack, sophia, and hal enter into a contract to close on the business without the non-competition agreement. jack st
    5·1 answer
  • The primary advantage an entrepreneur gains by leasing rather than buying facilities is
    15·1 answer
  • Identify the costs associated with buying a home
    12·1 answer
  • Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale,
    9·1 answer
  • Tomorrow is my interview in Lucknow Public School for admission for 9th standard. Can anyone help me by giving some tips and tri
    5·1 answer
  • The amount of risk that will remain in a portfolio depends on the degree to which the stocks are exposed to:______
    5·1 answer
  • Situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variabil
    7·1 answer
  • The organization of data within folders in a manual file system is determined by?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!