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Aloiza [94]
3 years ago
5

(Ignore income taxes in this problem.) An expansion at Fidell, Inc., would increase sales revenues by $75,000 per year and cash

operating expenses by $38,000 per year. The initial investment would be for equipment that would cost $135,000 and have a 5 year life with no salvage value. The annual depreciation on the equipment would be $27,000. The simple rate of return (AARR) on the investment is closest to:
Business
1 answer:
MariettaO [177]3 years ago
6 0

Answer:

The simple rate of return on the investment is closest to 7.41%.

Explanation:

This can be calculated as follows:

Equipment cost = $135,000

Annual profit = Annual sales revenue - Annual operating expenses - Annual depreciation on the equipment = $75,000 - $38,000 - $27,000 = $10,000

Therefore, we have:

Simple rate of return on the investment = Annual profit / Equipment cost = $10,000 / $135,000 = 0.0741, or 7.41%

Therefore, the simple rate of return on the investment is closest to 7.41%.

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Answer:

The actual cash value a person would receive for a $4,500 destroyed furniture would be:

$3,000

Explanation:

Actual cash value is a method to calculate the value of an insured good. Its formula goes like this: Original value minus the original value divided by the years covered multiplied by two. In our case this would be 4,500-[4,500 / 6 x 2] giving us as result the following operation 4,500- 1500 = 3,000.

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3 years ago
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Answer:

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Explanation:

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4 0
3 years ago
High levels of customer participation in a service imply that:
Dima020 [189]
The answer is <span>d. customers can jeopardize the service outcome.
</span>
The highest level of customer participation happens when there is a need for an active involvement on the part of the consumer which can be fruitful if followed. On the other hand, it can affect the whole program of the expected output when the consumer di not follow. Also, based on the given source this happens in counseling, training, and maintenance. 

The given source differentiated the levels of consumer participation.

Source: http://www.bu.ac.th/knowledgecenter/epaper/jan_june2009/pdf/Somyot.pdf

3 0
4 years ago
The purpose of a restrictive monetary policy is to:a. reduce borrowing costs b. stimulate spending curb c. rising prices and ove
katovenus [111]

Answer:c. Curb rising prices and overexpansion

Explanation:

Restrictive monetary policy is enacted by the Central bank to reduce money supply, curb rising prices and overexpansion.

I hope my answer helps you

5 0
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Answer:

Letter C is correct.<u> Distributive bargaining.</u>

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Therefore, the ideal alternative to the above question is distributive negotiation, which is used to distribute fixed resources, such as money, assets, resources and labor management negotiations such as wages.

4 0
4 years ago
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