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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%

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<h3>What is higher education?</h3>

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<h3>What to do to reduce the value of higher education?</h3>

To reduce the value of higher education, some students access scholarships that allow them to reduce these costs. However, scholarships generally require them to have high grades and maintain a high level of academic performance.

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2 years ago
Genent​ Industries, Inc.​ (GII), developed standard costs for direct material and direct labor. In​ 2017, GII estimated the foll
Alex_Xolod [135]

Answer:

The quantity variance = -900 unfavorable

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Direct materials flexibel - budget variance:

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3,000 x 0.7 = 2,100 standard pounds

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6 0
3 years ago
Cash investments made by the owner to the business are reported on the statement of cash flows in the
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Answer:

d. financing activities section

Explanation:

cash investment made by the owner and their withdrawals will be in the financing activities section

On the financing activities, the accounting does a detail ofthe origin of funds which paid for the assets. These funds could be from owners or lenders.

Therefore, the equity transactions are included in the financing activities sections

From the owner point of view, it is an investment. But, we must remember that the owner and te company are different entities. For the company it is financiation

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____ can be produced independently of the consumer and then stored and shipped.
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The answer is goods :)
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Symon's Suppers Co. has announced that it will pay a dividend of $4.23 per share one year from today. Additionally, the company
sweet-ann [11.9K]

Answer:

$68.23

Explanation:

In this question, we apply the dividend growth rate model which is shown below:

The computation of the current share price is shown below:

= (Current year dividend) ÷ (Rate of return on company stock - growth rate)

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