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tankabanditka [31]
3 years ago
8

Crowl Corporation is investigating automating a process by purchasing a machine for $802,800 that would have a 9 year useful lif

e and no salvage value. By automating the process, the company would save $138,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,200. The annual depreciation on the new machine would be $89,200. The simple rate of return on the investment is closest to (Ignore income taxes.):
Business
1 answer:
puteri [66]3 years ago
7 0

Answer:

Simple rate of return = 6.25%

Explanation:

As per the data given in the question,

Net operating income = saving - depreciation on machine

Investment =  cost price - scrap value

So, we can calculate the simple rate of return by using following formula:

Simple rate of return = Net operating income ÷ investment

By putting the value, we get

= ($138,000 - $89,200) ÷ ($802,800 - $22,200)

= 0.0625

= 6.25%

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Answer:

b. The ratio decreased

Explanation:

The current ratio is a financial performance measure that compares current assets to current liabilities, hence, in ascertaining the impact of the short-term borrowing on the current ratio, we would compute the current ratio before and after having taken the short term loan as shown thus"

current ratio=current assets/current liabilities

Before borrowing:

current ratio=$375,000/$150,000

current ratio=2.50

After borrowing:

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current ratio=1.67(it has declined from earlier 2.50 to 1.67)

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4 years ago
Comparative analysis can help managers with competitive monitoring where a company keeps tabs of its competitor's activities on
jok3333 [9.3K]

Answer:

False

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Comparative analysis refers to comparing two or more items, processes or alternatives so as to identify trends and patterns.

Competitive monitoring refers to monitoring competitor moves with respect to their pricing and the markets of operation.

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Comparative analysis however does not help with competitive monitoring wherein a company through a software tacks all the activities of it's competitors.

5 0
3 years ago
Public corporations:
gulaghasi [49]

Answer:

d. None of other choices are correct.

Explanation:

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3 years ago
A firm can develop competitive advantage by
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Answer:

The correct answer is E

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