Question
1. What is the accounting rate of return for a project that is estimated to yield total income of $345,000 over three years and costs
1. What is the accounting rate of return for a project that is estimated to yield total income of $345,000 over three years and costs $857,000? (Round your answer to 2 decimal places.)
Accounting rate of return: ____%
***************
2. A project has estimated annual net cash flows of $63,000 and is estimated to cost $352,800. What is the payback period? (Round your answer to 2 decimal places.)
Payback Period: ____ Years
****************
3. Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $244,000 and have a $48,800 salvage value in five years. The annual net income from the equipment is expected to be $29,280, and depreciation is $39,040 per year. |
Calculate Blue Marlin |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started