Calculate the margin romero company needed to earn

Assignment Help Accounting Basics
Reference no: EM131643589

Question 1 - Krauth Company purchased a machine for $119,000. The machine has a life of seven years with no salvage value. It is expected that the machine will generate annual net cash inflows of $28,000 per year over its useful life. Assume Krauth Company employs a cost of capital of 10% on all capital investment projects.

The internal rate of return (IRR) on the machine is closest to:

9%

10%

12%

14%

15%

16%

Question 2 - For the most recent year, Romero Company reported average operating assets of $200,000 and sales of $500,000.

Calculate the margin Romero Company needed to earn in the most recent year in order to achieve a return on investment of 15%. Enter your answer as a number followed by the % without a space in between (i.e., 10%).

Reference no: EM131643589

Questions Cloud

Repetition to produce a reaction in a dance performance : How do dancers use line, form, and repetition to produce a reaction in a dance performance?
Which act was introduced by the british parliament : What happened after American protests, which act was introduced by the British Parliament.
Evaluate the type of asset misappropriations that occurred : Evaluate the type of asset misappropriations that occurred at the organization, and assess the factors that contributed to the misappropriation.
Calculate the probabilities using poisson distributions : Use this information for the next 100 days to find the probability that there will be low seismic activity in five of the next 100 days.
Calculate the margin romero company needed to earn : Calculate the margin Romero Company needed to earn in the most recent year in order to achieve a return on investment of 15%
Define the evidence determine translation into practice : How does the strength of the evidence determine translation into practice? Why is it important to integrate both evidence-based practice
Would one consider socrate to be a conservative or a radical : Would one consider Socrates to be a conservative or a radical? In the context of the "Apology" and his defense.
How many batches should the baker make : On average, how many batches should the baker make? Use the following information to answer the next four exercises: Ellen has music practice three days a week.
Bsha bachelor of science in health administration program : describes the purpose of the BSHA Bachelor of Science in Health Administration program and how you believe it will help you achieve your goals

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd