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]
3 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]3 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]3 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
Which category (or type) of consumer products are: (1) relatively expensive, (2) infrequently purchased, and (3) buyers are will
artcher [175]

Answer:

consumer products provided are categorized thus:

(1) relatively expensive: a computer system

(2) infrequently purchased:  A car

(3) buyers are willing to expend considerable effort in planning and making purchases: A house

Explanation:

Consumer products are defined as products that satisfy a consumer's wants or needs. There can be convenient, affordable as well as expensive and infrequently purchased.

Consumer goods are final goods sold to consumers for  use. It is usually not used as means for further economic production activity.

Some consumer goods are durable and can last for up to three years or more while some are perishable with expiry dates and must be consumed within a short pace of time.

Finally, consumer goods can be grouped into different categories based on consumer behavior depending on how frequently they are used.

7 0
3 years ago
The subject line in an email helps the recipient decide which messages to read and ______________ to read them.
Sophie [7]

Answer:

Is it The email subject line helps recipients decide which messages to read and when to read them

Explanation:

It makes the most sense

6 0
3 years ago
1. __________ is the act of declaring a drivers license void and terminated when it is determined that the license was issued th
katrin2010 [14]

The answer to the blank space is cancellation.

In the United States, when your driver’s license status is deemed invalid it can be due to several reasons, which are generally categorized into four: <em>suspension, revocation, cancellation, and denial</em>.

A suspended license means that your license is temporarily out of service, perhaps due to receiving too many traffic tickets or driving under the influence (first time). A revoked license means that your license is cannot be reinstated, which can be due to a serious traffic offense or failing a DMV road test. A denied license means that your application for a driving license in denied due to some reasons.

5 0
3 years ago
3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of $717 million. Assume 3M p
Verizon [17]
Whats the question.....
4 0
3 years ago
What step can an organization take to improve its culture?
Feliz [49]

Answer:

a. Conduct regular development programs for employees

Explanation:

7 0
3 years ago
Other questions:
  • The AQCD test refers to the need for key external factors to exhibit what​ attributes? A. Actionable and decisive B. Decisive an
    10·1 answer
  • If duopolists individually pursue their own self-interest when deciding how much to produce, the amount they will produce collec
    11·1 answer
  • Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a
    5·1 answer
  • &amp;&amp;&amp;
    15·2 answers
  • Two years ago Joshua Ryan bought 100 XYZ at $60 per share. While he held the stock it paid dividends of $1 the first year and $1
    8·1 answer
  • How do trade agreements help the countries involved?
    5·1 answer
  • Present value. The State of Confusion wants to change the current retirement policy for state employees. To do​ so, however, the
    6·1 answer
  • Opera Corp. uses the dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows: Dec
    5·1 answer
  • Webster Corporation's budgeted sales for February are $335,000. Webster pays sales representatives a commission of 7% of sales d
    13·1 answer
  • The flow of _____ capital is controlled by the processes of immigration, migration, and emigration.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!