User Account

All Pages

Determine the average rate of return on the equipment

Assignment Help Accounting Basics
Reference no: EM132717890

Problem - Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $125,000 with a $15,000 residual value and an eight-year life. The equipment will replace one employee who has an average wage of $28,000 per year. In addition, the equipment will have operating and energy costs of $5,150 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.

Reference no: EM132717890

Questions Cloud

Determine cash payback period for both location proposals : Location 1 is expected to provide equal annual net cash flows of $150,000, Determine the cash payback period for both location proposals
Why do think earning per share is calculated : Why do think Earning per share is calculated based on Earnings available to common shareholders, not retained earnings? Explain
What is the adjusted present value of the project : APV Triad Corporation has established a joint venture with Tobacco Road Construction, Inc., to build a toll road in North Carolina. The initial investment.
Describe the type of conflict : Describe the type of conflict that is being represented by the particular scenario being described.
Determine the average rate of return on the equipment : In addition, the equipment will have operating and energy costs of $5,150 per year. Determine the average rate of return on the equipment
Discuss a government agency should set accounting standards : Discuss whether you think a government agency or a private body such as the FASB should set accounting standards. The response must be typed.
Determine the expected average rate of return : The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Determine expected average rate of return
Certificate issuance-security auditing and enterprise : Prepare a paper on the implications for voting, lotteries, certificate issuance, security auditing and enterprise.
How show accounting equation effects of required adjustment : How do Show the accounting equation effects of each required adjustment. Mobol, a wireless phone carrier, completed its first year of operations on December

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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