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
Aliun [14]
3 years ago
11

Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann

ual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 7-year life. If the salvage value of the equipment is estimated to be $75,000, what is the accounting rate of return?
Business
1 answer:
Bas_tet [7]3 years ago
7 0

Answer:

25%

Explanation:

Accounting rate of return =( Net income from investment ÷ Cost of investment ) × 100

Net income from investment = $100,000

Cost of investment = $400,000

Required rate of return = ($100,000 / $400,000 ) × 100

= 0.25 × 100

= 25%

You might be interested in
Emerson Inc.'s would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it ha
AfilCa [17]

Answer:

$2.50

Explanation:

Given that,

Dividend Paying out under a policy = 45% of its income

Net income = $1,250,000

Number of shares outstanding = 225,000

Total dividends:

= 45% of its income

= $ 1,250,000 × 45%

= $562,500

Dividend per share:

= Total dividends ÷ Number of shares outstanding

= $562,500 ÷ 225,000

= $2.50

7 0
3 years ago
What is a certificate of incorporation? A. taxes a stockholder pays B. a license to form a corporation C. a report filed with th
lions [1.4K]

A license to form a corporation issued by the state government.

3 0
3 years ago
Read 2 more answers
Which of the following best describes the concept of elastic demand?
Trava [24]
------------------elasticity of demand<span> measures the sensitivity of the quantity demanded to changes in the price</span>
4 0
3 years ago
Best joke will get Brainliest, thanks, and 5 stars
irina1246 [14]
My life.................
7 0
3 years ago
Read 2 more answers
The focus of Performance Based Logistics (PBL) is to leverage best practices of both Government and Industry.
natita [175]

The focus of Performance Based Logistics (PBL) is to leverage best practices of both Government and Industry.--- True

Explanation:

PBL is synonymous with performance-based life cycle product support, where outcomes are acquired through performance-based arrangements that deliver Warfighter requirements and incentivize product support providers to reduce costs through innovation. These Product Support Arrangements (PSA) are contracts with industry or intragovernmental agreements.

What is the focus of performance based logistics?

Performance-Based Logistics (PBL) is the purchase of support as an integrated, affordable, performance package designed to optimize system readiness and meet performance goals for a weapon system through long-term support arrangements with clear lines of authority and responsibility.

How long are PBL contracts?

Effective PBL contracts are typically multi-year contracts (i.e., 3 to 5 years with additional option or award term years), with high confidence level for exercising options/award term years.

Learn more about performance based logistics:

brainly.com/question/22567488

#SPJ4

8 0
2 years ago
Other questions:
  • Why are Partnerships often favored over corporations?
    8·1 answer
  • When a firm practices perfect price​ discrimination, it A. charges each consumer her reservation price. B. captures all the soci
    7·1 answer
  • What is the purpose of the audit policy section of a local gpo?
    13·1 answer
  • Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit var
    8·1 answer
  • Pharoah Company began the year by issuing $77500 of common stock for cash. The company recorded revenues of $783000, expenses of
    10·1 answer
  • Which of the following reflects Falkenstien's "Platinum Rule"?
    11·2 answers
  • Brian would like to get a new cell phone plan. He would like to know what monthly payment he can afford. He should _____.create
    15·2 answers
  • 3. Prefab, a furniture manufacturer, uses 20,000 square feet of plywood per month. Its trucking company charges Prefab $400 per
    5·1 answer
  • Briefly describe at least one additional test you could perform to gain evidence as to whether or not the cash account is materi
    5·1 answer
  • Frederick is about to start a small manufacturing business soon. He has asked some of his friends, who are entrepreneurs, for ad
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!