Question
1. A) Select the themes of design using Return on Investment ROI (Rate of Return) method , the data of both equipment are shown the
- 1. A) Select the themes of design using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below,
B) Compare the effect of decrease in initial cost of 5% on the rate of return for ThemeII (calculate the % of change in ROI). [25marks]
|
| Theme I | Theme II |
| Initial cost (OR) | 61000 | 67000 |
| Annual revenues (OR/yr) | 19800 | 19800 |
| O&M annual cost ((OR/yr) | 5400 | 2700 |
| Salvage value (OR) | 2700 | 5400 |
| Useful life (Years) | 7 | 9 |
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Construction Industry IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131920, 978-1304131928
