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
yanalaym [24]
3 years ago
10

Project A requires a $415,000 initial investment for new machinery with a five-year life and a salvage value of $37,000. The com

pany uses straight-line depreciation. Project A is expected to yield annual net income of $22,500 per year for the next five years. Compute Project A’s accounting rate of return.
Business
1 answer:
IrinaVladis [17]3 years ago
6 0

Answer:

9.96%

Explanation:

The formula to compute the accounting rate of return is shown below:

= Annual net income ÷ average investment

where,

Annual net income is $22,500

And, the average investment would be

= (Initial investment + salvage value) ÷ 2

= ($415,000 + $37,000) ÷ 2

= $452,000 ÷ 2

= $226,000

Now put these values to the above formula  

So, the rate would equal to

= $22,500 ÷ $226,000

= 9.96%

You might be interested in
Alex and bailey opened a dance studio together as general partners. they each invested $10,000 of their personal savings. after
Ivahew [28]

Since Alex and Bailey are partners and they will be shutting down the partnership. the debts should be settled by both. they will have to sacrifice their personal assets in doing so

7 0
3 years ago
Why do basketball players switch teams?<br> Why do they have to sign a paper when they do that?
Anika [276]

It varies from player to player, some do it for better pay and some do it because they don't like the team their with. They have to sign papers because there transferring their services to another franchise, and are agreeing to new terms of contracts. Things that are disclosed in the contracts are things such as payment and how many years they will be bonded by the contract.

6 0
3 years ago
A company discarded a display case it had originally purchased for $8,000. the case had $7,200 worth of accumulated depreciation
quester [9]
8000-7200=800

800 gain
3 0
1 year ago
The short-run supply curve for a purely competitive industry can be found by: Group of answer choices adding horizontally the im
igor_vitrenko [27]

Answer:

summing horizontally the segments of the MC curves lying above the AVC curve for all firms.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

The short-run supply curve for a purely competitive industry can be found by summing horizontally the segments of the marginal cost (MC) curves lying above the average variable cost (AVC) curve for all firms.

5 0
3 years ago
Is a bank slip a small loan ?
Setler [38]
A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account. A deposit slip, by definition, contains the date, the name of the depositor, the depositor's account number, and the amounts being deposited
7 0
3 years ago
Read 2 more answers
Other questions:
  • What types of behavior are considered discriminatory, harassment, and workplace violence?
    13·1 answer
  • Below are some of the accounts that Company J has on their books:
    13·1 answer
  • The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
    9·1 answer
  • Ivan is attending a union meeting in which the union president is discussing the company's plan to decrease wages in exchange fo
    11·1 answer
  • You've borrowed $20,000 on margin to buy shares in ixnay, which is now selling at $40 per share. your account starts at the init
    9·1 answer
  • Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a
    6·1 answer
  • Unscramble the vocabulary word from Chapter 12: yalplor
    12·1 answer
  • PLS HELPPP FASTTT!!!! Which of the following is not consistent with the efficient market hypothesis?
    5·1 answer
  • When spoiled goods have a disposal​ value, the net cost of the spoilage is computed by​ ________. A. adding the costs to complet
    11·1 answer
  • Define the following:<br> 1. Allocation of resources<br> 2. Economic system<br> 3. Market economy
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!