User Account

All Pages

Determine the average rate of return on the equipment

Assignment Help Accounting Basics
Reference no: EM132883978

Problem - Average rate of return --cost savings  - Wisconsin Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $90,000 with a $10,000 residual value and a 10-year life. The equipment will replace one employee who has an average wage of $30,000 per year. In addition, the equipment will have operating and energy costs of $4,500 per year.

Required - Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.

Reference no: EM132883978

Questions Cloud

Determine the annual net cash flow from operating the cruise : The ship has a service life of 10 years, with a residual value of $100,000,000 at the end of 10 years. Determine the annual net cash flow from operating
Determine the equal annual net cash flows : Luxmark Hotels is considering the construction of a new hotel for $210 million. Determine the equal annual net cash flows from operating the hotel
What themes do see emerging : What themes do you see emerging? How do they relate to your personal TRIP goals? During the week, keep track of all the negative thoughts you have about people
What options did generate for the outcome : What options did you generate for the outcome? What elements of communication were you able to attend to and which did you struggle the most with?
Determine the average rate of return on the equipment : In addition, the equipment will have operating and energy costs of $4,500 per year. Determine the average rate of return on the equipment
What is personally important gender-related concept : How does the topic you discussed relate to or draw on knowledge from humanities, natural sciences? What is personally important gender-related concept
Determine the cash payback period : A project has estimated annual net cash flows of $121,000. It is estimated to cost $798,600. Determine the cash payback period
Are acquainted with the practice of incorporating : Are you also acquainted with the practice of incorporating psychosocial issues into a client's assessment? A psychosocial assessment differs
Identify an example of a health communication message : Identify an example of a health communication message that was directed to a vulnerable or underserved group in your community.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Manipulation is a potential concern in money markets

Manipulation is a potential concern in money markets, particularly when a commercial bank holds a profitable position in which it can gain from may be an increase in interest rates.

  Compute the net income under absorption costing

The knowledge that the product is sold for $75 per unit and operating expenses are $340,000, compute the net income under absorption costing

  The kelsh company has two divisions--north and south the

the kelsh company has two divisions--north and south. the divisions have the following revenues and expenses north

  Feller company purchased a site for a limestone quarry for

feller company purchased a site for a limestone quarry for 100000 on january 2 2013. it estimates that the quarry will

  Calculate the balances in the general ledger accounts

Calculate the balances in the general ledger accounts. Create an unadjusted trial balance from the balances in the general ledger accounts

  Represents the biggest challenge in the decision to purchase

Which represents the biggest challenge in the decision to purchase new equipment? Which is not a typical cash inflow in capital investment decisions?

  Three-fourths of the taxes receivable are expected to be

prepare general journal entries to record the following transactions in rockwall citys general ledger and make

  What are the results to the parties

What are the results to the parties from the alternative transactions below (i.e., the amount and character of shareholder income or loss and E&P impact)?

  Adjustment to record accrued salaries at the end of the year

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded:

  Describe the essential points of callahan''s argument

Callahan makes a convincing argument for controlling the increasing cost of providing life-extending interventions to the elderly. In narrative form, present and describe the essential points of Callahan's argument and his assumptions.

  What is the net realizable value of the receivables

If Alpha Gym estimates 2% of revenue as bad debts, what is the net realizable value of the receivables which should be presented in the statement of financial

  Analyze business transaction and journalize the transaction

Analyze the business transaction and journalize the transaction - Doing it in a different order would make it very difficult to verify the necessary checks and balances to make sure you will balance the sheet at the end.

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