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Elanso [62]
3 years ago
7

A company is considering purchasing a machine that costs $232000 and is estimated to have no salvage value at the end of its 8-y

ear useful life. If the machine is purchased, annual revenues are expected to be $120000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased, the annual rate of return expected on this machine is
Business
1 answer:
Inessa05 [86]3 years ago
7 0

Answer:

45.69%

Explanation:

The formula to compute the accounting rate of return is shown below:

= Annual net income ÷ average investment

where,  

Net income is

= Annual revenues - annual operating expenses

= $120,000 - ($38,000 + $232,000 ÷ 8 year)

= $120,000 - ($38,000 + $29,000)

= $53,000

And, the average investment would be

= (Initial investment) ÷ 2

= ($232,000) ÷ 2

= $116,000

Now put these values to the above formula  

So, the rate would equal to

= $53,000 ÷ $116,000

= 45.69%

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Education is the basic requirement for profession.Explain this statement​
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Answer:

The answer is below

Explanation:

Education is considered the basic requirement for the profession because, through education, people get to learn the basic knowledge required to perform a profession.

For example, a medical doctor or physician profession requires education in core biological science subjects such as microbiology, human anatomy, medical rehabilitation, dentistry, etc.

Education gives the professional the knowledge to anticipate, predict, and carry out the right solution to any problem that needs to be solved under his or her profession.

For example, a civil engineer needs education in architectural and engineering drawing to translates the drawing into reality or an actual project.

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3 years ago
Lithium, inc. is considering two mutually exclusive projects, a and
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Missing question: Which project should be implemented based on net present value?

Solution:
NPV = -Co + C1/(1+r) + C2/(1+r)^2 + ... + Cn/(1+r)^n

Project A
NPV = -95000 + 65000/(1+0.1) + 75000/(1+0.1)^2 = $26,074.38

Project B
NPV = -120000+ 64000/(1+0.1) + 67000/(1+0.1)^2 + 56000/(1+0.1)^3 + 45000/(1+0.1)^4 = $66,362.95

The rule: The project with higher NPV is chosen for implementation. Based on the NPVs calculated, project B is the most viable.
5 0
4 years ago
Assume that we use a perpetual inventory system and that five identical units are purchased separately at the following four dat
swat32

Answer:

The cost of goods sold (income statement) should include 1 unit purchased on April 5 at $10.

The merchandise inventory account (balance sheet) should include the 4 units purchased later including their purchase date and specific cost:

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  • 1 unit purchased on April 15 at $14
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3 years ago
Why do so many people borrow money for large purchases instead of using sinking fund?
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I think that most of the people borrow money for large purchases instead of using a sinking fund because if you need money immediately borrowing money is a simple and easy thing, it takes less time whereas if you use sinking fund, it will take more time because for this you have to make plans earlier but it is a safe and protected method for clearing the debts.
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4 years ago
The following table shows the approximate income distribution for Croatia, Nicaragua, and Haiti in 2016. In particular, it shows
Semenov [28]

Based on the income shares of Croatia, Nicaragua, and Haiti, when it come to which nation has the most income, the answer is you cannot tell from this table.

<h3>Which nation has the most income?</h3>

The table simple shows the various percentages of the country's population that are earning a certain amount.

From this table alone, we cannot tell which nation has the most income.

We can infer however, that Croatia has the least income inequality based on the even spread of total income. Haiti then has the most income inequality.

Question is:

Which nation has the most income?

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  • Haiti
  • You cannot tell from the table

Find out more on income inequality at brainly.com/question/24554155.

#SPJ1

5 0
2 years ago
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