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vampirchik [111]
3 years ago
14

Crowl Corporation is investigating automating a process by purchasing a machine for $793,800 that would have a 9-year useful lif

e and no salvage value. By automating the process, the company would save $133,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,200. The annual depreciation on the new machine would be $88,200. The simple rate of return on the investment is closest to
a. 5.80%
b. 11.12%
c. 16.72%
d. 5.12%
Business
1 answer:
Vsevolod [243]3 years ago
6 0

Answer:

Simple rate of return is 5.8%

Therefore option (a) is correct option.

Explanation:

It is given that purchase cost = $793800

Company saving per year = $133000

Yielding = $21200

Annual depreciation = $88200

Annual profit = $133000 - $88200 = $44800

Net investment is equal to = $793800 - $21200 = $772600

Simple rate of return =\frac{44800}{772600}=0.0579

= 5.8%

Therefore simple rate of return is 5.8 %

So option (a) is correct.

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The purpose of a(n) _____ is to obtain additional information on a candidate and to clarify information gathered throughout the
mario62 [17]

Answer: interview

Explanation:

During interview, a candidate is able to talk extensively about himself and achievements. By this, he is able to clarify a lot of things about himself

7 0
3 years ago
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if my movie starts at 11:26 am but it takes 48 minutes to get there what time will it be when I get there
MrRissso [65]

Answer:

12:34

Explanation:

It will be 12:34 if you leave at 11:26

3 0
2 years ago
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Asper Corporation has provided the following data for February. Denominator level of activity 7,700 machine-hours Budgeted fixed
Brrunno [24]

Answer:

Asper Corporation has provided the following data for February. Denominator level of activity 7,700 machine-hours Budgeted fixed manufacturing overhead costs $ 266,420 Fixed component of the predetermined overhead rate $ 34.60 per machine-hour Actual level of activity 7,900 machine-hours Standard machine-hours allowed for the actual output 8,200 machine-hours Actual fixed manufacturing overhead costs $ 259,960 The budget variance for February is $6,460 Favorable.

Explanation:

Budgeted fixed manufacturing overhead cost = $266,420.

Actual fixed manufacturing overhead costs  = $259,960

The budget variance for February is calculated as below:

Budget Variance = Actual Fixed Manufacturing Overheads - Budgeted Fixed Manufacturing Overheads

Budget Variance =$259,960 - $ 266,420.

Budget Variance = -$6,460

Budget Variance = $6,460 Favorable

7 0
2 years ago
McMahon Inc. reported the following on the company's statement of cash flows in 2016 and 2015:
podryga [215]

Answer:

$137,200; $103,600

Explanation:

In 2015:

Free cash flow:

= Net cash flow from operating activity - Capital expenditure

= $294,000 - (70% × $224,000)

= $294,000 - $156,800

= $137,200

In 2016:

Free cash flow:

= Net cash flow from operating activity - Capital expenditure

= $280,000 - (70% × $252,000)

= $280,000 - $176,400

= $103,600

3 0
2 years ago
Use your knowledge of balance sheets, what are the total liabilities and retained earnings in the text below, respectively? ASSE
Vera_Pavlovna [14]

Answer:

B) 280,000; 200,000

Explanation:

Assets = Liabilities + Shareholder Equity

Assets:

Cash                              $50,000

Accounts receivable    $80,000

Inventory                     $100,000

Gross P&E                   $730,000

<u>depreciation               ($130,000)</u>

total                          = $830,000

Liabilities:

Accounts payable         $12,000

Notes payable              $50,000

<u>Long-term debt           $218,000 </u>

total                          = $280,000

Equity = $830,000 - $280,000 = $550,000

Common stock            $100,000

Add. paid-in capital    $250,000

Retained earnings = $550,000 - $100,000 (common stock) - $250,000 (APIC) = $200,000

3 0
2 years ago
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