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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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Uma and edward are assigned to partner on a project, but they have never worked together before. uma texts edward, "are you avai
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3 years ago
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 Se
Cerrena [4.2K]

Answer:

$112,500

Explanation:

                                                 July       August         September  October

Credit Sales(90000*75%)       67,500  

                   (110,000*75%)                       82,500

                   (120,000*75%)                                          90,000

Cash Sales (120,000*25%                                            30,000

<em>Total Cash expected to be collected in September will be;</em>

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Cash  Sales of September $30,000

Total cash expected to be collected in September =$112,500

4 0
3 years ago
Read 2 more answers
A standard "money demand" function used by macroeconomists has the form ln( ) = + ln( ) + m β , 0 β1 GDP β2R Where m is the quan
kvasek [131]

Answer:

1.The money demand will rise by 1.154%

2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%

Explanation:

1. Money demand function

ln(m) = β0 +β1 ln(GDP)+β2R

Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%

ln(m) = 1.5 ln ($100) - 0.04 X 0.03

ln(m) = 6.91

m = 1002.247

Suppose the GDP increases by 1%; the new GDP will be = $ 101  

ln(m) = 1.5 ln ($101) - 0.04 X 0.03

ln(m) = 6.92

m = 1013.81

If the GDP increases by 1% ,the money demand will rise by 1.154%

2.

If the interest rate increases from 3% to 4%

ln(m) = 1.5 ln ($100) - 0.04 X 0.04  

ln(m) = 6.906155

m = $ 998.400

If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%

3 0
3 years ago
The following amounts were selected from the production report of Chandon Corporation: Actual units in production 42,000 Equival
SpyIntel [72]

Answer:

Total cost is equal to $81300

So option (c) will be correct answer.

Explanation:

Actual unit of production = 42000

Cost of per equivalent material = $1.10

Equivalent cost of material = =42000\times1.1=46200$

Equivalent cost of labor = =39000\times 0.9=35100$

Therefore total cost of production = $46200+$35100 = $81300

So total cost will be $81300

Therefore option (c) is the correct answer

5 0
3 years ago
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