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Anit [1.1K]
3 years ago
6

J Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in eq

uipment $ 30,500 Annual cash inflows $ 6,200 Salvage value of equipment $ 0 Life of the investment 15 years Required rate of return 10 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
Business
1 answer:
IrinaVladis [17]3 years ago
6 0

Answer:

Simple accounting  rate of return= 27.32%

Explanation:

The accounting rate of return = Average annual operating income / Average investment

Annual depreciation = ( Cost - Salvage value)/No of years = (30,500 - 0 )/15

                                =       2033.33

Average Investment -= (Cost + scrap Value)/ 2

                                   = (30500 + 0)/2 =15,250

Average Annual income = 6,200 - 2033.33

                                         = 4166.67

Simple accounting rate of return =( 4,166.667/ 15,250 )× 100

                                                     = 27.32%

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C: right to be heard
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Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders in a certain c
aalyn [17]

Hey There!:

Sample Mean = 4.4823

SD = 0.1859

Sample Size (n) = 7

Standard Error (SE) = SD/root(n) = 0.0703

alpha (a) = 1-0.99 = 0.01

t(a/2, n-1 ) =  3.7074

Margin of Error (ME) =  t(a/2,n-1)x SE = 0.2606

99% confidence interval is given by:

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4.4823 +/- 0.2606 = (4.222 , 4.743)

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5 0
3 years ago
A reduction in the unemployment rate will tend to cause which of the following? (a) an increase in the separation rate (b) a red
OLEGan [10]

Answer:

Letter c is correct. <u>A reduction in the duration that one is unemployed.</u>

Explanation:

The correct alternative is the letter c.

For when there is a reduction in the unemployment rate, it consequently means that there will be a reduction in the duration of unemployment, as this situation implies that there is an increase in the level of employment and therefore the duration of unemployment will also tend to be less, as with more vacancies of unemployment. available jobs, the shorter the duration of unemployed workers.

3 0
3 years ago
Blue Spruce Manufacturing has an annual capacity of 80,200 units per year. Currently, the company is making and selling 78,000 u
Aliun [14]

Answer:

The annual capacity is 85000 units. If order is accepted of 12000 units the company will be able to sell only 73000 units (instead of 78000).

Explanation:

Current Net Income calculation and New Net Income calculation are atteched in the archive.

  • Increase in income = new income – old income = 370000 – 340000 = $30000
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Contribution gain on special order – 12000 units x ($105-$90) = $180,000

(-) Contribution lost of normal sale – (78000 units – 73000 units) x ($120-$90) = $150000

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3 years ago
A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of
Oxana [17]

Answer:

A. a separate schedule.

Explanation:

This is explained to be cash flow schedule or also cash flow statement. It is explained to be on out of the three financial statement which used generally to report for cash which been generated and how this money has been totally been spent within a period or interval which could be a week, month, quarter or even probably a year.

In the statement of cash flows, the cash flows are known to be generated from investing activities section while inclusion of receipts from the sale of investments. This is why in the stated 20 year payable bond, it is known to have been recorded in statement of cash flows in a separate schedule.

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4 years ago
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