Annual rate of return of engles oil company

Reference no: EM13143766

Engles Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $130,000 and will increase annual expenses by $80,000 including depreciation. The oil well will cost $490,000 and will have a $10,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return.

Reference no: EM13143766

Questions Cloud

Journal entries to record retirement of old issue : Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2011. Prepare the entry required on December 31, 2011 to record the payment of the first 6 months interest and the amortization of premium on..

How higher price of corn impact the market : Use the demand and supply analysis to explain how higher price of corn impact the market for Ethanol (a motor fuel manufactured from corn and can be used to power the engines of many Automobiles).

What is the amount of stockholders equity : On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of stockholders’ equity as of..

Problem on par-value preferred stock : A corporation has 1,000 shares of 10 percent, $50 par-value preferred stock and 10,000 shares of $5 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $40,000, the common stockholders will re..

Annual rate of return of engles oil company : Engles Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $130,000 and will increase annual expenses by $80,000 including depreciation.

Explain what are the products from the combustion : What are the products from the combustion of 2-methyl-3-ethyloctane?

What entry is necessary accounting records : What entry is necessary to adjust the accounting records for the change in accounting principle? (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Contribution to overhead as a percent of sales : The Footwear Department of Lee's Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Footwear Department's contribution to overhead as a p..

What should be average property tax per unit : To the nearest whole cent, what should be the average property tax per unit at a sales volume of 49,700 units? (Assume that this sales volume is within the relevant range.)

User Account

All Pages