1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Strike441 [17]
2 years ago
13

Cute Camel Woodcraft Company is considering a one-year project that requires an initial investment of $500,000; however, in rais

ing this capital, Cute Camel will incur an additional flotation cost of 6%. At the end of the year, the project is expected to produce a cash inflow of $700,000. The rate of return that Cute Camel expects to earn on the project after its flotation costs are taken into account is
Business
1 answer:
vfiekz [6]2 years ago
8 0

Answer:

The correct answer is "32.076%".

Explanation:

Given:

Initial investment,

= $500,000

Cash inflows,

= $500,000

The floatation cost will be:

= 500,000\times 6 \ percent

= 30,000 ($)

The total cost will be:

= Initial \ investment+Floatation \ cost

= 500000+30000

= 530000

hence,

The rate of return will be:

= \frac{Inflows}{Cost} -1

= \frac{700000}{530000} -1

= \frac{700000-530000}{530000}

= 0.32076

= 32.076 (%)

You might be interested in
The climate in which jonah lives is mild all year long except during the hotter summer months. for 3 months out of the year, jon
ASHA 777 [7]
If Jonah needs to use 4 portable fans for 3 months out of the year, and the electricity used in one fan costs 1 cent per hour and each fan is used for about 96 hours per month, the total electricity cost for the fans during one year is $11.52.
3 0
3 years ago
Read 2 more answers
Familiar routes to and from commonly visited areas create an individual's:
Artist 52 [7]
<span>Can create mental map of the chosen routes. By following certain routes on a daily basis, a person can mentally remember how to get to destination without having to do recalling that anyone would do when they haven't fully remember how to get there. There wouldn't be a need to use GPS or mapping app, if he or she can recall how to get there.</span>
5 0
3 years ago
Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value beca
Alla [95]

Answer:

C. include a credit to the equipment accumulated depreciation account.

Explanation:

Since Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should include a credit to the equipment accumulated depreciation account.

In Accounting, Depreciation can be defined as the decrease in the value of an asset (factory equipment, logistics tools etc) as a result of wear or tear, within a specific period of time. Depreciation is used for the allocation of cost to tangible assets with respect to its life expentency or within its useful life.

7 0
2 years ago
By keeping employees’ personal records confidential, an employer respects their right of:
nika2105 [10]

Answer: PRIVACY. 100% postive

Explanation:

7 0
2 years ago
Many gas stations with convenience stores sell gas at, or close to, cost. In these organizations, profit comes from the convenie
OLga [1]

Answer: build traffic.

Explanation:

The pricing model employed by such gas stations is built in a way to drive traffic. traffic is important and has an impact in many ways  1. low traffic can bog your business down at some level.

2. When you increase your traffic along with the quality of the visitors, the better you will be able to increase your sales.

traffic in this context refers to customers the more you are able to pull customers over the more sales you make.

4 0
3 years ago
Other questions:
  • Which of the following statements is true of a mission statement?
    11·2 answers
  • What’s the best way for the FED (Federal Reserve Board) to create a tight money market? Buy government bonds and sell government
    14·1 answer
  • You have a portfolio that is invested 11 percent in Stock R, 56 percent in Stock S, and the remainder in Stock T. The beta of St
    8·2 answers
  • Matt newell, a former air force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views
    5·1 answer
  • You wish to buy a Euro Call Option expiring in 6 months with a strike price of $1.35. The volatility of the $/Euro exchange rate
    7·1 answer
  • Firms with a(n) _________________ orientation spend little on marketing research and planning, target customers indiscriminately
    5·1 answer
  • If Ben invests $3500 at 4% interest per year, how much additional money must he invest at 5 1 2 % annual interest to ensure that
    6·1 answer
  • Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent
    10·1 answer
  • 1) Acreditamos que a convergència tecnológica acabarà levando a
    6·1 answer
  • A bank has written a call option on one stock and a put option on another stock. For the first option the stock price is 50, the
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!