What is the unadjusted rate of return

Reference no: EM13698231

Um Good, Inc., a candy maker, Is thinking of purchasing a new machine. A marketing firm has estimated that the new machine could increase revenues by $25,000 a year for the next five years. The expenses, (including depreciation) directly relating to the machine total $100,000 ($20,000 X 5 years). The initial purchase cost would be $50,000. What is the unadjusted rate of return?

Reference no: EM13698231

Questions Cloud

Adjusted net saving is negative in some developing countries : Adjusted Net Saving is negative in some developing countries. Increases in natural resource exports will always increase Adjusted Net Savingn Gross Domestic Product fails to account for unpaid work. Environmentally Adjusted Net Domestic Product subtr..

Accounting for a long-term construction contract : Widjaja Company is accounting for a long-term construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract..

The beginning balances for the customer accounts : Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Sunrise Enterprises, which had a $480 beginning balance. In addition, there were no collections during the period.

Prepare a project report on legal and contractual issues : Prepare a project report on legal and contractual issues relating to E-procurement in Nigeria

What is the unadjusted rate of return : What is the unadjusted rate of return?

Raise the gasoline tax as a way of reducing air pollution : Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?

Stock dividend applicable to the outstanding shares : On March 15, My Corp. BOD declared a 2 percent stock dividend applicable to the outstanding shares of its $10 par value common stock, of which 400,000 shares are authorized, 260,000 are issued, and 40,000 are held in the treasury

Any one time the following will be held : A company plans to sell 12000 units in month 1 and 13000 units in month 2. Sales will increase by 1000 units each month after that. Production will be scheduled so that at any one time the following will be held

John is a young accountant at a local cpa firm : John is a young accountant at a local CPA firm. He is wresling with a problem: tyring to decide whether to cover up a mistake made in not attaching an irrevocable election to a key client's recently sumitted tax return.

User Account

All Pages