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Helen [10]
3 years ago
15

A machine costs $180,000 and will have an eight-year life, a $20,000 salvage value, and straight-line depreciation is used. Mana

gement estimates the machine will yield an after-tax net income of $12,500 each year. Compute the accounting rate of return for the investment.
Business
1 answer:
Mice21 [21]3 years ago
4 0

Answer:

12.5%

Explanation:

Computation for the accounting rate of return for the investment

Using this formula

Accounting rate of return=After-tax net income/[(Machine costs+Salvage value)/2]

Let plug in the formula

Accounting rate of return = $12,500/[($180,000 + $20,000)/2]

Accounting rate of return=$12,500/$100,000

Accounting rate of return=0.125*100

Accounting rate of return= 12.5%

Therefore the Accounting rate of return for the investment will be 12.5%

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risk represents the portion of an​ asset's risk that can be eliminated by combining assets with less than perfect positive corre
Viktor [21]

Answer:

Diversifiable

Explanation:

Diversifiable risk is risk that is peculiar to a company or industry. It can be eliminated by diversifying portfolio.

Systematic or Market risk is risk that is peculiar to the market and it can't be diversified away.

I hope my answer helps you

3 0
3 years ago
Ways to "produce for inventory" that result in increasing operating income include ________.
Troyanec [42]

The options are:

A switching production to products that absorb the least amounts of fixed manufacturing costs

B undervaluing ending inventory by not recording certain costs that have been incurred

C delaying items that absorb the greatest amount of fixed manufacturing costs

D switching production to products that absorb the most amounts of fixed manufacturing costs

E deferring maintenance to accelerate production

Answer:

deferring maintenance to accelerate production

Explanation:

In the production process if we want to increase operating income we need to reduce cost.

Producing for inventory to reduce cost involves production process that minimises what a business spends in order to increase profit.

A way this can be done is to defer or delay items increase cost of production.

For example if we defer maintenance to increase production, it will result in higher operating income.

4 0
3 years ago
Marbry Corporation's balance sheet and income statement appear below.
Maslowich

Answer: 382

Explanation:

8 0
3 years ago
Robert is writing a report about ty cobb, a famous baseball player, and needs to gather information. he types "ty cobb" into his
Mkey [24]
Had to look for the missing options and here is my answer.

Based on the given scenario above about Robert who did an internet search about TY Cobb, he is most likely using a SEARCH-RESULTS PAGE or the Search Engine Result Page (SERP). This is the first page that you will see when you enter something as a query. Hope this answers your question.
8 0
3 years ago
There are three reasons for the downward slope of the demand curve:
Virty [35]

Answer:

Explanation:

From the above question, three reasons for the downward slope of the demand curve and the effect with the component of aggregate demand are:

1. Net Exports : the international trade effect

2. consumption : the wealth effect

3. investment : the interest rate effect

4 0
3 years ago
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