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zmey [24]
3 years ago
14

Joe's Hardware is adding a new product line that will require an investment of $ 1 comma 540 comma 000. Managers estimate that t

his investment will have a​ 10-year life and generate net cash inflows of $ 305 comma 000 the first​ year, $ 265 comma 000 the second​ year, and $ 230 comma 000 each year thereafter for eight years. The investment has no residual value. Compute the ARR for the investment. ​First, enter the​ formula, then compute the ARR of the new product line. ​(Enter your answer as a percent rounded to two decimal​ places
Business
1 answer:
andrew-mc [135]3 years ago
6 0

Answer:

ARR=15.82%

Explanation:

Joe's Hardware

Cash flow 1,540,000

Average Cash flow =305,000+265,000+(6×230,000)/8

Average Cash flow =305,000+265,000+1,380,000/8

=1,950,000/8

=243,750

ARR= Average Annual Operating Income/ Initial investment

=243,750/1,540,000

ARR=15.82%

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nasty-shy [4]

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Listing of exclusive distribution rights

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5 0
1 year ago
Years ago, the travel industry was controlled by a few large travel companies that booked holidays, air tickets, bus tickets, an
malfutka [58]

Answer:

A. The travel industry changed from a consolidated structure to a fragmented one.

Explanation:

In the given passage, the speaker talks of the change in the way travels are managed. Initially, few large travel agencies took control of the way travel is arranged, from booking tickets to managing hotel rooms.

But as the internet grew and many people are able to access it, travels, accommodations, etc. are being managed by the individuals themselves or even smaller travel agencies are able to do the work without the need for such large companies to be involved.

This shows that the travel industry changed from a consolidated, large companies structure to a fragmented one, that of smaller agencies and even individuals themselves.

Thus, the correct answer is option A.

6 0
3 years ago
Which of the following statements regarding leadership is true?
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Answer:

5) Nonsanctioned leadership is as important as formal influence.

7 0
3 years ago
Read 2 more answers
An establishment has three departments with variable costs as a percentage of sales revenue of 30 percent, 40 percent, and 50 pe
zalisa [80]

Answer:

60 percent

Explanation:

Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.

Contribution margin = Sales - Variable costs

Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.

It is represented mathematically as,

= \frac{Contribution\ margin}{Sales}

Also, contribution margin ratio = 100 - variable cost ratio percentage.

Hence, contribution margin for three departments would be:

A = 100 - 30% = 70%

B = 100 - 40% = 60%

C = 100- 50% = 50%

This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.

Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.

\frac{0.70y\ +\ 0.60y\ +\ 0.50y}{3y}    

Thus, weighted average contribution margin would be, 60 percent

7 0
2 years ago
Gap, radio shack, bath and body works, and foot locker are examples of _____. a supermarkets b warehouse clubs c convenience sto
Brut [27]

Answer: Option E

           

Explanation: In simple words, traditional specialty stores refers to the retail stores that offers only one category of product but do provide their customers various options in respect to quality and brands of that one particular product.

For example- stores offering only sports goods, pet supply or jewelries etc. These goods are running in US for decades and are still handling a separate customer base due to the variety they offer and the all time availability of products that they have.

6 0
3 years ago
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