User Account

All Pages

Compute what is the annual rate of return on the investment

Assignment Help Financial Accounting
Reference no: EM132719320

Problem 1: A company projects an increase in net income of $207000 each year for the next five years if it invests $900000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $300000. What is the annual rate of return on this investment?

A. 23.0%

B. 34.5%

C. 30.0%

D. 29.6%

Reference no: EM132719320

Questions Cloud

What is the cash payback period for pharoah company : The use of the new computer, net income will increase by $3000 a year. If depreciation expense is $1000 a year, the cash payback period is
Determine the investment cost for replacing the fixtures : Lifetime investment cost (in present value terms) to replace each HID fixture with LED $500. Determine the investment cost for replacing the 700 fixtures
Create a pivot table that shows sales revenue : Create three columns in the Data worksheet that calculates sales revenue, the variable cost, and contribution margin for each sales record
Forecast particular variable in the near future : Of these factors which of these factors would have an influence on a firm's cost of capital and what the forecast is for this particular variable in the near fu
Compute what is the annual rate of return on the investment : The equipment has a 5-year life and an estimated salvage value of $300000. What is the annual rate of return on this investment?
Which entries correctly records refund of unsuccessful share : ABC Limited issued a prospectus offering 100 000 ordinary shares at an issue price of $3.50 each, payable $2.5 per share on application.
What the denominator in computing the annual rate of return : What the denominator in computing the annual rate of return is? Kingbird Company is considering buying equipment for $380000 with a useful life of 5 years
Human-computer interaction : You are the lead human-computer interaction (HCI) engineer on a major design project for an organization of your choice.
Determine the actual cost of direct labor : Determine the actual cost of direct labor, direct materials, and overhead for each procedure, and the total cost of production for each procedure

Reviews

Write a Review

Financial Accounting Questions & Answers

  What type of short-term note is desirable

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?

  What is the importance of workplace diversity training

What is the difference between diversity and inclusion. What is the importance of workplace diversity training

  The unemployment and inflation rates

Macropoland has a natural rate of unemployment at about 4.5% and its long run average of inflation over time has been about 2%. This means that no matter what happens in the short-run, the long-run averages of unemployment and inflation will always b..

  Present value tables-calculate the proceeds of learned

On January 1, 2016, Learned, Inc., issued $70 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. Using the present value tables, calculate the proceeds (issue price) of Learned, Inc.’s bonds on January 1, 2016,..

  What is the standard deviation of a portfolio

The correlation coefficient between the stock return is 0.2. What is the standard deviation of a portfolio composed of 65% Gunning's and 35% Avon?

  Illustrate what is diggin tools cost of preferred stock r ps

The flotation costs associated with the new issue were 6 percent and diggin tools marginal tax rate is 30 percent. Illustrate what is diggin tools cost of preferred stock r ps?

  How depreciation is to be allocated in each of accounting

How depreciation is to be allocated in each of the accounting period for the four years using reducing balance method of depreciation.

  Determine the ending balance in the inventory account

Jill's Dress Shop had a beginning balance in its inventory account of $52,000. Determine the ending balance in the inventory account

  Coding systems and terminology

Coding Systems: Which type of coding system is indicated in each of the following independent situations? Explain your reasoning.. Terminology; Match the number to the corresponding letter

  Calculate the operating income if sheffield road store close

Calculate the operating income if the Sheffield Road store is closed. Ridley and Scott Mercantile operates two stores, one on Oriole Avenue

  Provide all necessary journal entry to account for one year

Alba Electronics provides a one-year warranty, Provide all necessary journal entries to account for the one-year warranty in the 2019/20 financial year.

  Standard fraud risk assessment questionif someone did want

standard fraud risk assessment questionif someone did want to commit fraud and not be caught how would they do it?one

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