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:
Residual or salvage value isn't needed in the calculation of deprecation expense using the double declining method.
Explanation:
Deprecation expense using the double declining method = [2 ×(1/useful life)] × cost of the asset
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Answer: a) total assets will increase by less than four percent
Explanation:
Since the tax rate and the dividend payout ratio are fixed, and you have net working capital and all costs varying directly with sales, the total assets will increase by a value that is less than the annual increase in sales.
Many employers fail to adequately socialize or orient their new hires to the organization because they are usually busy with and it takes lot of effort to do.
<h3>Who is an employer?</h3>
It should be noted that an employer simply means an individual who pulls resources together to achieve a goal. He's the owner of the business.
In this case, many employers fail to adequately socialize or orient their new hires to the organization because they are usually busy with and it takes lot of effort to do.
Learn more about employers on:
brainly.com/question/26463698
