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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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According to the World Banks's world development indicators, real gross domestic product (GDP) in sub-Saharan Africa in 2015 was
vovangra [49]

Answer:

0.12%

Explanation:

According to the given situation, the computation of E.U. emergency trust fund as a percentage of sub-Saharan GDP is shown below:-

E.U. emergency trust fund as a percentage of sub-Saharan GDP is

= (Amount of Plans ÷ Real gross domestic product) × 100

= (2 billion ÷ 1.65 trillion) × 100

= 0.12%

Therefore for computing the E.U. emergency trust fund as a percentage of sub-Saharan GDP we simply applied the above formula.

6 0
3 years ago
William Welsh, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking vie
vekshin1

Answer:

labor

Explanation:

There are four factors of production; land, labor, capital and entrepreneurship:

  • William is the entrepreneur,
  • Capital accounts for the helicopters, facilities and the advertisement.
  • Land in this case is the plot of land where the business will be located.
  • But who will fly the helicopters and perform maintenance operations? Who will sell the tours and perform administrative tasks? William will not fly the 5 helicopters himself, perform maintenance operations and sell the tours.

8 0
3 years ago
Read 2 more answers
Which of the following statements is CORRECT?
vovikov84 [41]

Answer:

Suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. In this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the WACC will both be equal to the interest rate on the firm’s currently outstanding debt, provided that debt was issued during the past 5 years.

5 0
3 years ago
As the result of an increase in capital the demand for labor would_______, the supply of labor would ________, and the quantity
Mademuasel [1]

Answer:

The correct answer here is option b.

Explanation:

When here is an increase in capital, the firm would like to produce more. So, the demand for labor would increase. Though the supply of labor would remain the same as it is not affected by the change in capital.

With the shift in the demand curve, the quantity of labor hired would increase as well. With no change in labor supply, the wage rate will increase as well.

8 0
3 years ago
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation’s ant
Andrej [43]

Based on the costs incurred by Kasper Corporation to make the commercial-grade cooking griddle, the total cost per unit is <u>$55.00.</u>

<h3>What is Kaspar Corporation's cost per unit?</h3>

This can be found as:
= Direct materials + Direct labor +  Variable manufacturing overhead  + Fixed manufacturing overhead per unit + Variable selling and administrative expenses + Fixed selling and administrative expenses per unit

Solving gives:

= 17 + 8 + 11 + (300,000 / 30,000) + 4 + (150,000 / 30,000)

= $55

Find out more on the total cost of produced units at brainly.com/question/18089483.

#SPJ1

6 0
2 years ago
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