What is the machines arr

Assignment Help Accounting Basics
Reference no: EM132558096

Questions -

Q1: Which of the following is not claimed as an advantage of the accounting rate of return (ARR)?

a. It facilitates ranking of projects of different sizes.

b. Accounting profit is a number familiar to most managers.

c. It is consistent with widely used measures of profitability.

Q2: A machine costs $100,000 and is expected to last four years, with a residual value of $10,000, Straight-line depreciation is used. The machine will earn a profit of $120,000 (before depreciation) over its life, equally each year. What is the machine's ARR? Round your percentage to the nearest integer.

A. 55%

B. 15%

C. 14%

D. 27%

Q3: Which of the following is NOT considered a weakness of the ARR method of evaluating investments?

a. The use of accounting profit

b. The use of average investment figures

c. Ease of calculation

d. The relative sizes of competing investments

Reference no: EM132558096

Questions Cloud

Calculate how much this investor would need to borrow : Calculate how much this investor would need to borrow at the risk-free rate in order to establish this target expected return
Business performance by implementing supply chain management : Identify the components of the supply chain management and specify how this process can be implemented to improve the performance of the micro hydro power plant
How to manage work priorities and professional development : Prepare a report that explains how to manage work priorities and professional development. How can I ensure that I meet my job responsibilities
Discuss relationships between obesity and health conditions : Discuss social determinants of obesity, cultural factors and increased obesity within United States. Discuss relationships between obesity and health conditions
What is the machines arr : The machine will earn a profit of $120,000 (before depreciation) over its life, equally each year. What is the machine's ARR
General about minor sports injuries : What could you tell him in general about minor sports injuries? How could he determine that it is a sprain or a strain?
Wound-healing process- cardiovascular system : Maria (our diabetic) may develop complications that may impair her wound-healing process. Explain how the cardiovascular system may be a contributing factor.
What were that annual average returns for each fund : Personal Strategy Growth Fund - 9.50 percent. What were that annual average returns for each fund for this five-year period? Show all working
What is the machines payback period : The machine will earn a profit of $120,000 (after depreciation) over its life, equally each year. What is the machine's payback period

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.

  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!

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