Answer:
A
Explanation:
Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project
average rate of return = average net income / average cost of investment
average net income = (total net income - depreciation) / useful life
(8,500,000 - $4,250,000) / 20 = 212,500
Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2
($4,250,000 - 0) / 2 = 2,125,000
ARR = 212,500 / 2125,000 = 0.1 = 10%
I think the answer would be either A or D
Answer:
D. Cash flow statement
Explanation:
A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.
Answer:
D. There will be a greater quantity of computer operating systems available in the market.
Explanation:
The only certain consecuence of more producers entering the market is that there will be a greater quantity of the good or service in the market.
From the price perspective: <u><em>product price tends to fall or rise. </em></u>
As more competitors enter a market the price of the <u><em>product tends to fall</em></u> because the producers will look for a cheaper price than the prices existent for computer operating in order to capture more clients. But at the same time the already stablished producers will look for differentiation factors and will<u><em> increase the price of the systems. </em></u>
