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Juli2301 [7.4K]
2 years ago
7

Carmel Corporation is considering the purchase of a machine costing $47,000 with a 7-year useful life and no salvage value. Carm

el uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average investment
Business
1 answer:
Nitella [24]2 years ago
3 0

Answer:

$23,500

Explanation:

The average accounting rate of return is the rate of return on the investment in the project considering the average annual net income and the average amount of investment made in the project.

In other words, it is the average annual net income expressed as a percentage of the average investment as shown below

average accounting rate of return =average annual net income / average investment.  

average investment=(initial capital outlay+book value of the project at end of useful life)/2

initial capital outlay=$47,000

book value of the project at end of useful life=$0

average investment=($47,000+$0)/2

average investment=$23,500

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stepan [7]

Answer:

True.

Explanation:

Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.

Hence, it is important to know your own strengths and weakness because it would help in the decision-making process.

7 0
2 years ago
Describe external resources useful to entrepreneurs during concept development
marin [14]
The external research that would be useful would be research.
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3 years ago
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astra-53 [7]

Answer: False

Explanation:

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Zolol [24]

Answer:

Answer C

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8 0
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Land and equipment are considered as fixed assets. As such, Julia should enter the two in long term fixed assets column and list their current values.

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Over time though, she should carry out valuation to have  a true picture of how the land has appreciated in value.

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