1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
netineya [11]
2 years ago
13

A new machine can be purchased today for $450,000. The annual revenue from the machine is calculated to be $72,000, and the equi

pment will last 10 years. Expect the maintenance and operating costs to be $4500 a year and to increase $750 per year. The salvage value of the machine will be $35,000. What is the rate of return for this machine
Business
1 answer:
shutvik [7]2 years ago
6 0

Answer:

7.98%

Explanation:

The Rate of Return (ROR) is the gain or loss of an investment over a period of time compared to the initial cost

Starting year 2, Annual O&M cost in year N = Annual O&M cost in year (N - 1) + $750

Annual net benefit  = Annual revenue - Annual O&M cost

In year 10, Annual revenue ($) = 72,000 + 35,000 salvage value = 107,000

Rate of Return (ROR) of Annual net benefit is computed using Excel11 IRR function as follows.

Year (N) Revenue ($) Cost ($) NAB ($)

0                                     4,50,000 -4,50,000

1               72,000 4,500 67,500

2               72,000 5,250 66,750

3               72,000 6,000 66,000

4               72,000 6,750 65,250

5               72,000 7,500 64,500

6               72,000 8,250 63,750

7               72,000 9,000 63,000

8               72,000 9,750 62,250

9               72,000 10,500 61,500

10              1,07,000 11,250 95,750

ROR of NAB = 7.98%

You might be interested in
Suppose the governments of two different economies, economy A and economy B, implement a permanent tax cut of the same size. Inv
timama [110]

Available Options Are:

a) higher sensitivity to changes in the interest rate, or

b) lower sensitivity to changes in the interest rate

Answer:

Option A. Higher sensitivity to changes in the interest rate

Explanation:

The reason is that the tax cut will encourage foreign investment and this increase in Foreign Investment will increase the GDP but by small amount. However, the higher interest rate in an economy always raises additional money in an economy which companies invest to purchase the new GDP. Thus the GDP growth is highly sensitive to changes in interest rate.

8 0
3 years ago
If employers do not require a(n) __________, performance appraisal ratings often do not match the normal distribution of a bell-
Lubov Fominskaja [6]

Answer:

forced distribution

Explanation:

Based on the rest of the sentence it can be said that the missing term is forced distribution. This is a system that requires managers to evaluate each individual and rank them typically into one of three categories. These categories are excellent, good, and poor and allow managers to indicate if the employee should be terminated, is doing good, or is in-line for promotion as indicated in the graph below. This term is also known as the vitality curve or bell curve.

4 0
2 years ago
Everything else held constant, an increase in the excess reserves ratio causes the m1 money multiplier to ________ and the money
Cloud [144]

The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.

<h3>What is the reserve ratio?</h3>

The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.

<h3>How is reserve ratio determined?</h3>
  • The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
  • The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>

The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.

learn more about reserve ratio here

<u>brainly.com/question/13758092</u>

#SPJ4

4 0
2 years ago
Which of the affirmative action strategies would involve an employer changing the company policy or the way an organization is d
TiliK225 [7]

Identifying and removing employment practices which are working against minority applicants and employees is the affirmative action strategies would involve an employer changing the company policy or the way an organization is decorated.

Affirmative action includes a set of policies and practices within a government or organization which seeks to include particular groups based on their race, gender, sexuality, or nationality.

In no way does affirmative action require an employer to hire an unqualified minority over a qualified non minority, which is important to note. Thus, affirmative actions include outreach efforts, training programs, and other positive steps.  

Hence, affirmative action gives a certain advantage to the minority groups in the recruitment process.

To learn more about affirmative action here:

brainly.com/question/15393594

#SPJ4

8 0
2 years ago
What is the biggest attraction for businesses considering engaging in
ivann1987 [24]

Answer:

the size of the market on a p e x

Explanation:

5 0
2 years ago
Read 2 more answers
Other questions:
  • A broker produces a buyer who is interested in buying a listed property. At closing, the seller is unable to provide marketable
    15·1 answer
  • Suppose Jacques and Kyoko are playing a game in which both must simultaneously choose the action Left or Right. The payoff matri
    5·1 answer
  • Select the correct statement about HR responsibilities of supervisors.A. Supervisors do not interview job candidates.B. In large
    14·1 answer
  • In 2017, a marketing manager for new balance's minimus golf shoe needs to forecast sales through 2019. she begins with the known
    13·1 answer
  • McQuilkin and Copan adopt different positions toward capitalism and socialism. Which author is more favorable to free market cap
    8·1 answer
  • Assume that you plan to open a soft ice-cream franchise in a resort community during the summer months. Fixed operating costs fo
    10·1 answer
  • Josh, an HR manager at RoxCom LLC, is responsible for implementing a guided self-appraisal system using management by objectives
    12·1 answer
  • The following credit sales are budgeted by Terra Co.: January $204,000 February 300,000 March 420,000 April 360,000The company's
    13·1 answer
  • Citynet, LLC, established an employee incentive plan 'to enable the Company to attract and retain experienced individuals.' The
    15·1 answer
  • According to the liquidity preference model, if the Federal Reserve increases the money supply, the equilibrium interest rate __
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!