Complete Question:
Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5,800. Each machine has an economic life of 8 years. What is the annual rate of return the additional investment in machine A?
Answer:
IRR is 11.81%
Explanation:
<u><em>We have to find the annual rate of return on the additional investment in machine A.</em></u> The additional investment can also be termed as incremental investment which is $1,500 ($9,500 - $8,000). Furthermore, the additional cost savings of operating machine A is $300 ($5,500 - $5,800). And this cost savings will be during the life span of the machine A.
Now
We can compute IRR, by using Excel as under:
Answer:
Debit Credit
Income Summary $1,500
Retained Earning $1,500
Credit Balance of income Summary account will be closed by a debit entry in this account. Transfer the balance to retained earning by credit entry to this account.
The answer would be D noncumulative stock.
Sammy's quarter-pound burger is positioned by: price-quality
<u>Explanation:</u>
The price-quality way of positioning practices the similarity within price and quality before-mentioned that it optimally values a commodity according to the feature of the commodity to retain the commodity hovering in the customer's perception. Pricing does not necessitate to be huge for more leading positioning.
Marketers frequently do price/ quality properties to locate their trademarks. Although the price is an essential factor, the commodity quality must be tantamount to, or indeed more reliable than, fighting trademarks for the positioning strategy to be active.