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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%

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3 years ago
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Nataly_w [17]

Answer:

$152,000

Explanation:

Calculation for the cost of the ending inventory

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Using this formula

Beginning Inventory =Cost-to-retail percentage*Beginning inventory at retail

Let plug in the formula

Beginning Inventory =60%*$200,000

Beginning Inventory =$120,000

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Using this formula

Current period purchases= Purchases percentage* New layer

Let plug in the formula

Current period purchases=64%*50,000

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Ending inventory cost=Beginning Inventory+Current period purchases

Let plug in the formula

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4 0
3 years ago
To form a corporation, the organizers must follow the requirements set forth by the corporation code of the state in which the c
Fantom [35]

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Explanation:

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According to the question, the organizers uses the proper requirement with the help of corporation code to form a proper corporation.

8 0
2 years ago
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Answer:

$115,714

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Pinta's capital account should have been 2/7 x $405,000 = $115,714

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3 0
2 years ago
Short paragraph about Junior Technical Assistant​
kati45 [8]

Answer:

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Explanation:

8 0
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