Calculate the simple rate of return on the machine

Assignment Help Accounting Basics
Reference no: EM132074923

Question - The Jackson Company has invested in a machine that cost $75,000, that has a useful life of four years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of two years. Given these data, calculate the simple rate of return on the machine? (Ignore income taxes in this problem.)

25.0%

22.5%

75.0%

21.4%

Reference no: EM132074923

Questions Cloud

What was your dollar return and percent return : If you owned 720 shares of Sprint, what was your dollar return and percent return? (Negative answers should be indicated with a minus sign.
Explain the human resources life cycle : BSBHRM405:Explain the human resources life cycle (HRLC) and the place of recruitment and selection.
Software developing androids : Describe the seven phases in the systems development life cycle. Identify the primary difference between the different software development methodologies.
Prepare the entry to record the employer payroll taxes : The amount paid to employees in excess of $7,000 was $1,360,000. Prepare the entry to record the employer payroll taxes
Calculate the simple rate of return on the machine : The Jackson Company has invested in a machine that cost $75,000, Given these data, calculate the simple rate of return on the machine
Prepare the journal entries to record interest expense : Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 105 and (2) 95
What would be the beta of your portfolio : If I invested 90% of my wealth in the market portfolio and the remainder of your wealth elsewhere. What would be the beta of your portfolio?
Expected rate of return on the stock : With a beta of 1.9 and expected rate of return of 28%. If the market return this year turns out to be 12 percentage points under expectations,
What is the post money valuation : Now if I am raising 200,000 USD for 20% what is the pre money valuation and what is the post money valuation.

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