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kupik [55]
3 years ago
9

The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server. The budgeted ope

rating income of the Beach Division is currently $2,940,000 with total assets of $28,600,000 and noninterest-bearing current liabilities of $600,000. The proposed investment would add $18,000 to operating income and would require an additional investment of $120,000. The targeted rate of return for the Beach Division is 9 percent. Ignoring taxes, how much is the return on investment of the Beach Division if the ice cream server is not purchased?
Business
1 answer:
Savatey [412]3 years ago
5 0

Answer:

ROI = 10.5%

Explanation:

The  ROI of a Division is the portion of then operating assets that is earned by  as operating income  by it. The higher the better.

Net operating assets = 28,600,000 - 600,000 = 28,000,000

ROI = Income/ Net operating assets × 100

ROI = 2,940,000/28,000,000  × 100

      = 10.5%

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9. Mackenzie PLC is considering expanding a production line. The new equipment for the line will cost $255,000. In addition, the
NNADVOKAT [17]

Answer:

Net Present Value = $59,632.78

Explanation:

<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project. </em>

<em>NPV = PV of cash inflow - PV of cash outflow </em>

Present value of cash inflow:

65,000 × (1.09375)^(-1) + 98000 ×(1.09375)^(-2)+ 126,000 ×(1.09375)^(-3)+  132,000 × (1.09375)^(-4)= 326882.7792

PV of annual maintenance cost :

=1,500 × (1- 1.09375^(-4))/0.09375

=4819.84773

NPV = 26882.7792  - 4819.84773 - (255,000+12250)

= 59,632.78

8 0
3 years ago
In the U.S. current account, most of the trade deficit results from an excess of imported A. merchandise and services B. merchan
Lina20 [59]
In the U.S. current account, most of the trade deficit results from an excess of imported <span>merchandise (B).</span>
3 0
3 years ago
The following information is for employee William Heedy for the week ended March 15.
ioda

Answer:

1. b. $896.00

2. c. $317.20

3. a. $578.80

4. b. $67.20

5. d. $4.80

Explanation:

1. WIlliam's total earnings

40 hours at $16 = $640

8 hours at $32 = $256

Total                  = $896

2. WIlliam's total deductions

Income Tax                                        $200

United Fund deduction                     $50

Social security tax (6% * $896)         $3.76

Medicare tax (1.5% * $896)                <u>$13.44</u>

Total                                                    <u>$317.20</u>

3. William's net pay

= Total earnings - Total deductions

= $896 - $317.20

= $578.80

Cash Paid is $578.80

4. Employers FICA based on Williams pay

Social Security and Medicare taxes = 7.5% * $869 = $67.20

5. Employers Federal Unemployment based on Williams pay

Federal unemployment tax = 0.8% * $600 = $4.80

7 0
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Answer:

to find profit make

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2 years ago
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