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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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Hoochie [10]

Answer :

Net present value = -$30,284.90

Net present value = -$15,699.78

Explanation :

As per the data given in the question,

Particulars                 Amount     Factor              Purchase

Cost of new vehicle -$33,500    1                    -$33,500.00

Annual Maintenance -$1,200   3.605             -$4,326.00

Less : Salvage value    $13,300 0.567              $7,541.10

Net Present value                                             -$30,284.90

Particulars                  Amount       Factor           Purchase

Cost of new vehicle       $0                1                      $-

Annual Maintenance -$4,355       3.605          -$15,699.78

Less : Salvage value        $0             0.567              $-

Net Present value                                               -$15,699.78

We simply multiplied the amount with the factor so that the purchase amount could come

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3 years ago
How to find expiry date for a plane ticket?
kow [346]
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Consider the following scenario analysis:
seropon [69]

Based on the scenario analysis on stocks and bonds, we know the following:

  • Treasury bonds will provide a higher return in a recession than in a boom.
  • The expected return of Bonds is 9.8% and that of stocks is 11.6%.
  • The standard deviation of Bonds is 9.24% and that of stock is 11.76%.

<h3>What does the scenario analysis on Bonds and Stocks show?</h3>

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)

= 9.8%

The expected return on stocks will be:

= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)

= 11.6%

Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

Find out more on stock expected returns at brainly.com/question/18724022.

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In employee is taking part in a performance appraisal process that requires the employee to rate a coworker's performance. In th
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Performance appraisal is peculiar to establishments to better improve such. When a situation as the above is the case, then, tge situation is an example of Halo and Horn Effect.

<h3>Halo and Horn Effect</h3>

Halo and Horn Effect is when our first impression of somebody leads us to have a biased positive or negative opinion of their work or company. Hence, the relationship will most likely reflect in such situation.

Therefore, the answer is Halo and Horn Effect.

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4 0
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List four disadvantages of bankruptcy
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Answer:

Impaired credit (report and score) and loss of credit.

Court costs and attorneys' fees and costs.

Loss of property and nonessential possessions.

Ripple effect.

Explanation:

5 0
3 years ago
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