Pocket pilot inc is considering an investment in new

Reference no: EM13570600

Pocket Pilot Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications device. The device is expected to generate additional annual sales of 6,000 units at $284.00 per unit. The equipment has a cost of $669,600, residual value of $50,400, and an eight-year life. The equipment can only be used to manufacture the device. The cost to manufacture the device is shown below.

Cost per unit:
Direct labor		$47.00
Direct materials		184.00
Factory overhead (including depreciation)		32.00
	Total cost per unit	$263.00

Determine the average rate of return on the equipment. If required, round to the nearest whole percent.

Reference no: EM13570600

Questions Cloud

Discuss the pros and cons of annuities when compared with : discuss the pros and cons of annuities when compared with other financial instruments and whether they provide a better

Daisy electronics just paid a 1000 dividend the market : daisy electronics just paid a 1000 dividend the market yield is yielding 10 the risk from rate is 4 and their beta is

Drago distribution handles the warehousing of perishable : drago distribution handles the warehousing of perishable foods and is considering replacing one of its primary cold

What was his return on the investment what is the total : calculating the rate of return on investment using financial leverage suppose does dave invested only 20000 of his own

Pocket pilot inc is considering an investment in new : pocket pilot inc. is considering an investment in new equipment that will be used to manufacture a mobile

A project requires a net investment of 450000 it has a : a project requires a net investment of 450000. it has a profitability index of 1.25 based on the firms 12 percent cost

Rental enterprise is trying to predict the cost associated : rental enterprise is trying to predict the cost associated with producing its anchors. at a production level of 5000

What are the challenges of sentencing juveniles as adults : question what are the challenges of sentencing juveniles as adults? what dilemmas are associated with sentencing

Dividend changes may be used by management as a credible : dividend changes may be used by management as a credible communication tool signal investors about future earnings

User Account

All Pages