User Account

All Pages

Compute the average rate of return

Assignment Help Accounting Basics
Reference no: EM132772313

Problem - Bi-Coastal Railroad Inc. is considering acquiring equipment at a cost of $520,000. The equipment has an estimated life of eight years and no residual value. It is expected to provide yearly net cash flows of $104,000. The company's minimum desired rate of return for net present value analysis is 10%.

Required -

a. Compute the average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment.

b. Compute the cash payback period.

c. Compute the net present value.

Reference no: EM132772313

Questions Cloud

Determine the vulnerability of your network : You have been given a directive to conduct penetration testing to determine the vulnerability of your network.
Discuss which theory you believe is the most effective : Discuss which theory you believe is the most effective explanation for juvenile crime and why. Review current cases such as Trayvon Martin, and Jordan Brown.
Most effective or efficient methodology : Does agile development work for every project? What are some notable reasons why agile would not be the most effective or efficient methodology?
Calculate for annual depreciation use sinking fund method : 15% before tax, is this a desirable investment. Use sinking fund method to calculate for annual depreciation. What is the % rate of return?
Compute the average rate of return : Compute the average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment
How do you know the seven dimensions are not present : The seven dimensions of ABA identified in your text and the Baer, Wolf, and Risley article, are the guiding principles for the field of Applied Behavior.
Effective or efficient methodology : What are some notable reasons why agile would not be the most effective or efficient methodology?
Determine the present value index for the two machines : The sewing machine will increase productivity from sewing 150 baseballs per hour to sewing 290 per hour. Determine the present value index for the two machines
Do you feel confident in the results of each test selected : Do you feel confident in the results of each test selected? Why or why not? When considering the limitations of clinical interviews presented in your text.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find what is the revaluation surplus on december

What is the revaluation surplus on December 31, 2019? On January 1, 2020, an impairment is detected and the recoverable amount on this date of the machinery.

  Management team for ppq parts manufacturing company

As part of the management team for PPQ Parts manufacturing company, you are tasked with selecting the best software packages for the firm's materials requirements planning (MRP), capacity requirement planning (CRP), and enterprise resource plannin..

  How much water must be available to support local population

Assuming a use of 10,000 gallons per month per household, estimate how much water must be available to support your local town population?

  Include broadcast studio equipment and satellite telemetry

A few of these are scheduled to come offline and de-orbit since their operational lives have pasted. Other assets include broadcast studio equipment and satellite telemetry, tracking and control facilities.

  Calculate the weighted average number of common shares

Salmon Limited reported profit of $465,325 for its November 30, 2021, year end. Calculate the weighted average number of common shares for the year

  Mayer instrumentation sold a depreciable asset for cash of

mayer instrumentation sold a depreciable asset for cash of 490000. the original cost of the asset was 1580000. mayer

  The virtual business portal

Resource: Kudler Fine Foods Virtual Organization found by using the Virtual Business Portal

  Evaluate the following internal control procedures

Explain to your friend whether each of the numbered items below is an internal control strength or weakness

  Compute annual depreciation using the straightline method

Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000.

  Assuming that operating expenses

Johnson Corporation began 2013 with inventory of 10,000 units of its only product.

  Which trade would you make to protect your portfolio

You are implementing a portfolio insurance strategy using index futures designed to protect the value of a portfolio of stocks not paying any dividends.

  Micha smith is a young attorney who has decided to leave

micha smith is a young attorney who has decided to leave her current employer and set up her own law practice. she has

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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