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horrorfan [7]
3 years ago
9

Crowl Corporation is investigating automating a process by purchasing a machine for $804,600 that would have a 9 year useful lif

e and no salvage value. By automating the process, the company would save $139,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,400. The annual depreciation on the new machine would be $89,400. The simple rate of return on the investment is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
Nataly_w [17]3 years ago
8 0

Answer:

Simple rate of return on Investment = 6.34%

Explanation:

As per the data given in the question,

Initial investment = $804,600

Realisable value = $22,400

Net cash flow = $804,600 - $22,400

= $782,200

Annual income:

Net income = Cash savings - Depreciation

= $139,000 - $89,400

= $49,600

Simple rate of return on Investment = Net income ÷ Net cash flow

= $49,600 ÷ $782,200

= 0.0634

= 6.34%

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Answer: i dotn noy

Explanation:

7 0
2 years ago
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The seller has placed moving boxes in the closet that contains the access panel to the attic. during the buyer's home inspection
Sholpan [36]

Nothing. The inspector won't be able to investigate the attic during the inspection. The inspector is not required to move objects to access blocked areas. This is the responsibility of the seller prior to the inspection taking place

<h3>What does inspection serve to accomplish?</h3>
  • Inspection denotes a thorough analysis. Meeting consumer needs and preventing the distribution of substandard items are inspections' main goals. Unquestionably, some product flaws cannot be detected or corrected at the final stages of manufacture.
  • An inspection entails checking, or examining and evaluating, a subject. To make sure that it complies with certain requirements, we could inspect a structure or organization. The inspectors must guarantee that nothing is broken and that no one is in violation of the law.
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4 0
1 year ago
An elderly physician has built up his own practice into a quite valuable business. Now that he is thinking of retiring, he wants
inn [45]

Answer:

No

Explanation:

Tehe Overlapping tenure for the retiring and new physicians tends to increase the transfer of practice specific knowledge.  The profit sharing with the new physician increases her incentives to maximize profits but since the sale price is a multiple of the profits during this 3 year, the new physician has an incentive to shirk to keep the profits low. it would be better to use a multiple of profits from the period before she began this probation.

7 0
3 years ago
When is a wrecker considered to be an emergency vehicle
RoseWind [281]

I believe the answer is: its emergency lights are flashing

When is emergency lights are flashing, the wrecker would most likely driving toward the area where accidents happen, and they would be used to drag out ruins or the heavy vehicles that collided on the sites. Because of this, we need to provide space for the wrecker to pass if it shows its emergency lights.

4 0
2 years ago
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Airborne Airlines Inc. has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest pa
ivann1987 [24]

Answer:

7.52%

Explanation:

First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:

=rate(nper,pmt,-pv,fv)

the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times

pmt is the amount of annual coupon payment which is $106

pv is the current price of the bond at $860

fv is the face value of the bond at $1000

=rate(20,106,-860,1000)=12.54%

The yield to maturity on the new issue is 12.54%  as well

after-tax cost of debt=pretax cost of debt*(1-t)

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t is the tax rate of 40% or 0.4

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5 0
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