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bazaltina [42]
2 years ago
12

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Business
1 answer:
PolarNik [594]2 years ago
5 0

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Creating an investment account
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3 years ago
Which of the following formulas is used to compute the accounting rate of return?
tekilochka [14]

Answer:

Option (A) is correct.

Explanation:

Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:

Accounting rate of return = (Average Income ÷ Initial Investment)

For example:

Net profit for 3 years are as follows:

2012 - 13 = $50 million

2013-14 = $100 million

2014-15 = $150 million

Initial investment = $200

Average profit = ($50 + $100 + $150) ÷ 3

                        = $100

Accounting rate of return = (Average Income ÷ Initial Investment)

                                          = $100 ÷ $200

                                          = 0.5 or 50%

5 0
3 years ago
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president h
lana [24]

Answer:

Explanation:

Variance analysis studies the relationship between actual and budgeted cost for business activities. Variance analysis helps the management in two ways;

  • Favorable
  • Unfavorable

Favorable - if the actual cost incurred is less than the budgeted cost, the difference amount is a saving for the company.

Unfavorable - if the actual cost is more than the budgeted cost, the difference is an extra expenditure for the company.

Flexible budget;

  • The flexible budget is prepared at different levels of volume that was initially projected by the master budget.
  • It is highly styled and more useful than the master budget.

The report showing the Activity and Spending  Variances for march is given in the file attached below, in other not to cause confusion. Thank you.

Download docx
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3 years ago
Kinh tê chính trị mục đích của công thức k=c+v
Fynjy0 [20]

Answer:

Explanation:

.

8 0
2 years ago
You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an
Alex

Answer:

The withdrawals will be of  $ 11,379.014 per month

Explanation:

Future value of the annuities:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C         750.00

time 360(30 years x 12 monhs per year)

rate 0.008333333 (10% / 12 months)

750 \times \frac{1-(1+0.00833)^{-360} }{0.008333} = PV\\

PV $1,695,365.9436

C \times \frac{(1+r)^{time} -1}{rate} = PV\\

C         250.00

time 360 (30 years x 12 monhs per year)

rate             0.005 (6% / 12 months)

250 \times \frac{(1+0.005)^{360} -1}{0.005} = PV\\

PV $251,128.7606

Total 1,695,365.84 + 251,128.76 = 1.946.494,6‬

and from here we withdraw for 25 years:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 1,946,495

time 300 (25 years x 12 months)

rate 0.004166667 (5% / 12 months)

1946494.6 \div \frac{1-(1+0.004167)^{-300} }{0.004167} = C\\

C  $ 11,379.014

6 0
2 years ago
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