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horsena [70]
3 years ago
8

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $21,000,

would be replaced by a new machine. The new machine would be purchased for $420,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $145,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
Nadya [2.5K]3 years ago
6 0

Answer: 18.8%

Explanation:

Simple rate of return on investment = Incremental net operating income / investment

Incremental net income = Operating savings - Annual cost

= 145,000 - 420,000/6 years

= $75,000

Net investment = Cost of new machine - salvage value of old

= 420,000 - 21,000

= $399,000

Return on investment = 75,000/399,000

= 18.8%

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A company that has just completed its Initial Public Offering has raised $200 million of capital and has been listed on the NYSE
coldgirl [10]

Answer:

1 year

Explanation:

Under the shelf registration rule the company has to wait for up to 1 year because it is madated  that the company file quarterly and annual reports with the SEC, before it can do an "add on" offering under the Security and Exchange Commission (SEC) Rule 415.

Note that the "add on" offering are additional shares issued by a company after going public inorder to raise cash or for expanding into new markets.

5 0
4 years ago
Read 2 more answers
High quality goods and services are made available to consumers because of producers __________.
trapecia [35]

Answer:

b. Would like to compete

d. specilize in production

Explanation:

Competition is when businesses selling similar products, in the same market, try to outsell each other through winning more customers.  When businesses compete, consumers benefit through fair prices and higher quality goods. Competing businesses innovate and create products with a high utility value to attract more customers. As a result, they offer customers products and services of high quality.

A business that engages in a specialization produces fewer varieties of products.  It focuses on manufacturing goods and services that it has a comparative advantage. Due to specialization, the firm and its employees become experts in producing its products of choice. Consequently, it offers goods and services that are of a higher quality than a business that does not specialize.

4 0
3 years ago
Read 2 more answers
In the individual level adoption process for a low involvement good, such as a new pack of gum or candy bar, what two steps in t
likoan [24]

Answer:

evaluation and trial

Explanation:

In low involvement goods such as a new pack of gum or candy bar the evaluation and trial stages are often reversed. This is mainly due to there being very low risk for trying out a new unrecognized brand of such a product, this combined with the amount of time needed in order to evaluate other options greatly outweighs the benefit. Therefore most individuals try the product out instead of evaluating all options which isn't done for higher risk purchases.

8 0
3 years ago
Could I Industries just paid a dividend of $1.62 per share. The dividends are expected to grow at a rate of 20 percent for the n
nata0808 [166]

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g  =  2.0736(1+4%)/12%-4%

                      =   1.6848

/8%

                      =   53.916

                 Year Year Year Year Year  

                    0             1             2           3            4  

                          20%  20%  20% 20%  

Dividend             1        1.2      1.44  1.728 2.0736  

Ifninty dividend                                               55.91*  

Total Cashflows 1    1.2     1.44         1.728 55.98  

Pres.Val @12%    1     1.07142 1.14795  1.22995   35.583

     

Value of stock 40.030    

4 0
3 years ago
If an investor purchases $1,000 face amount of an 8orporate bond at 93, and the bond is scheduled to mature in 2028, what will t
Nastasia [14]

The amount to be paid on maturity is $100,440

Given that;

Purchase value of 8% corporate bond at 93 = $1,000

Find:

The amount to be paid on maturity

Computation:

Interest amount = Face value of bond × Price × Interest

Interest amount = $1,000 × 93 × 8%

Interest amount = $7,440

The amount to be paid on maturity =  $7,440 + $93,000  

The amount to be paid on maturity = $100,440

In finance, maturity or maturity date is the final payment due date of a loan or other financial instrument such as a bond or term deposit upon which principal (and remaining interest) is paid.

Maturity is the date on which the life of a trade or financial instrument ends, after which it must be renewed or cease to exist. The life of a bond is the period during which its holder receives interest payments on their investment. When the bond matures, the holder will be refunded the face value. The maturity may change if the bond has a put or call option.

Learn more about Maturity here: brainly.com/question/9099365

#SPJ4

7 0
2 years ago
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