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uranmaximum [27]
2 years ago
7

A company projects an increase in net income of $30000 each year for the next five years if it invests $300000 in new equipment.

The equipment has a five-year life and an estimated salvage value of $100000. What is the annual rate of return on this investment?
Business
1 answer:
iren [92.7K]2 years ago
5 0

Answer:

Annual rate of return = 13%

Explanation:

Since the firm's net income increases by $30,000 per year, the cash flows per year = net income + depreciation costs

Depreciation costs = ($300,000 - $100,000) / 5 = $200,000 / 5 = $40,000

The cash flows generated by this investment are as follows:

Year 0 = -$300,000

Year 1 = $70,000

Year 2 = $70,000

Year 3 = $70,000

Year 4 = $70,000

Year 5 = $170,000 (including salvage value)

To calculate the project's rate of return (RoR) we can use an excel spreadsheet and the IRR function

=IRR (values,[guess])

=IRR (-300000,70000,70000,70000,70000,170000)

= 13%

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jok3333 [9.3K]

Answer: Your budget for sales and promo are excessive, and you reached diminishing returns on your spend.

Explanation:

You can check the options online.

The market share refers to the percentage of total sales that is generated by a company in an industry.

If the potential market share is higher than the actual market share, the reason for this will be due to the fact that the budget for sales and promo are excessive, and you reached diminishing returns on your spend.

5 0
2 years ago
Upon receiving a complaint, HUD initiates an investigation and makes a determination to bring charges or dismiss the complaint w
liubo4ka [24]

Answer:

c. 100 days of the filing of the complaint.

Explanation:

After receiving a complaint, HUD starts the investigation within 30 days of receiving the complaint and the maximum time period to investigate the complaint is 100 days i.e. HUD would dismiss the complaint within 100 days when the complaint is filed

Therefore in the given case, the option c is correct as it is mentioned the 100 days and the same is to be considered

6 0
2 years ago
In the context of the six sections of the Position Analysis Questionnaire (PAQ), _____ represent the reasoning, decision-making,
emmainna [20.7K]

Answer: B. mental processes

Explanation: In the context of the six sections of the Position Analysis Questionnaire (PAQ), _____ represent the reasoning, decision-making, planning, and information-processing activities involved in performing a job.

A. job contexts

B. mental processes

C. special codes

D. information inputs

The Position Analysis Questionnaire (PAQ) is relatively complex, and requires that an employee must have the reading level of a college graduate to be able to complete it and evaluates job skill level and basic characteristics of applicants for a set match of employment opportunity. It measures the characteristics of a job and relates them to human characteristics, such as information input, mental processes, work output, relationships with others, job context, and so on.

Mental processes in the context of the six sections of the Position Analysis Questionnaire (PAQ) represents the reasoning, decision-making, planning, and information-processing activities involved in performing a job.

7 0
2 years ago
the common sotkc of Ubees is currently sold at $26.35 per share, and it just a divident of $1.00 last year. The flotation costs
White raven [17]

Answer:

11.06%

Explanation:

Cost of equity = (D1/Current price) + Growth rate

Cost of equity = [(1.00*1.07)/26.35] + 0.07

Cost of equity = 0.04061 + 0.07

Cost of equity = 0.11061

Cost of equity = 11.06%

So, Ubees's cost of internal common equity is 11.06%.

7 0
3 years ago
Marvin Gaye's song "Gotta Give It Up" was protected by ___________ .
monitta

Answer:

d. not selected option d copyright

6 0
3 years ago
Read 2 more answers
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