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Eva8 [605]
3 years ago
11

Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann

ual increase in cash flow of $170,250. The equipment will have an initial cost of $540,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $195,000, what is the accounting rate of return?
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

the accounting rate of return is 18.75%

Explanation:

The computation of the accounting rate of return is as follows:

But before that following things need to be determined

Depreciation expense is

= ($540,000 - $195,000 )÷ (5 years)

= $69000

The Net income is

=  $170,250 - $69,000

= $101,250

Now the accounting rate of return is

= Net income ÷ Initial investment

= $101,250 ÷ $540,000

= 18.75%

hence, the accounting rate of return is 18.75%

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Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his main
dmitriy555 [2]

Answer:

Fixed costs= 510

Explanation:

Giving the following information:

Month Maintenance Expense Machine Hours

1 $ 3,480 2,380

2 3,670 2,480

3 3,850 2,580

4 3,980 2,610

5 3,980 2,460

6 4,400 2,620

7 3,970 2,600

8 3,780 2,570

9 3,500 2,390

10 3,120 2,260

11 2,960 1,650

12 3,240 2,250

To calculate the fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,400 - 2,960) / (2,620 - 1,650)

Variable cost per unit= $1.484536

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,400 - (1.484536*2,620)

Fixed costs= $510

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,960 - (1.484536*1,650)

Fixed costs= 510

3 0
3 years ago
A nurse encourages employees to implement a magnet recognition program in the organization. the nurses think beyond their own pe
SVETLANKA909090 [29]

Answer: representing the group

Explanation:

From the question, we are informed that a nurse encourages employees to implement a magnet recognition program in the organization and that the nurses think beyond their own personal needs and are clear about the group outcomes.

The leadership quality according to gardner’s tasks that is reflected in the activity of the nurse is the representing the group. The leader sets aside their personal aim for the group.

3 0
3 years ago
If a limited partner actively participates in day-to-day management of the business, he or she may forfeit limited partner statu
Tom [10]

Answer:

If a limited partner actively participates in day-to-day management of the business, he or she may forfeit limited partner status and lose limited liability for debts and liabilities: Given statement is a. True

Explanation:

A limited partner are also known as silent partners. They are part owners whose liability of the debts of the firm cannot exceed the amount that he invested in the company.

A limited partnership would have one general partner and at least one limited partner. The general partner is the one who manages the business from day-to-day.

Limited partners do not manage the day-to-day affairs of the business. In case they do, they are then treated as general partners. And would lose the limited liability for debts as stated in the statement. This, it is true.

7 0
3 years ago
How much money would you have to deposit today in order to have $5,000 in three years if the discount rate is 6 percent per year
Stells [14]

Answer:

$4,198.10

Explanation:

Compounding and discounting are the methods used to determine the present and future value of money.

Compounding shows the Future value of an amount today while discounting shows the present value of a future amount.

Fv = Pv ( 1 + r )^n

where

Fv = Future value

Pv = Present value

r = discount rate

n = time

5000 = Pv ( 1 + 0.06)^3

Pv = 5000(1.06)^-3

= $4,198.10

8 0
4 years ago
A buyer entered into a written contract with a seller to purchase his commercial property for $100,000. The contract did not spe
sukhopar [10]

Answer:

Im pretty sure that the seller would prevail.

Explanation:

If not than I apologize so sorry <3

3 0
3 years ago
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