FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABB Corp. is going to purchase a new piece of equipment that costs $50,000. The company expects to make $7000 a year for the next

ABB Corp. is going to purchase a new piece of equipment that costs $50,000. The company expects to make $7000 a year for the next 10 years from the product produced by the equipment. If the equipment will be essentially worthless after 10 years, what is the companys return on investment (ROI)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Decision Makers

Financial Management For Decision Makers

Authors: Peter Atrill

7th Edition

129201606X, 978-1292016061

More Books

Students also viewed these Finance questions

Question

★★★★★
Net income of Mansfield Company was $45,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $60,000,...

Answered: 1 week ago

Question

★★★★★
1 Why might benefits matter more than ever to employees? Review the information provided in the following global report on employee attitudes towards benefits provision: Willis Towers Watson (2017),...

Answered: 1 week ago

Question

★★★★★
2. How price elasticity of demand affects total revenue.

Answered: 1 week ago

Question

★★★★★
After watching the video on Mercosur, discuss the following: 1. What benefits does Uruguay enjoy by being a part of the Mercosur? 2. How can Uruguay create a competitive advantage? 3. Is the Mercosur...

Answered: 1 week ago

Question

★★★★★
Define zero coupon bond. Why do debtors issue them?

Answered: 1 week ago

Question

★★★★★
Lack of timeliness and a fixed format are disadvantages of which type of accounting?Lack of timeliness and a fixed format are disadvantages of which type of accounting

Answered: 1 week ago

Question

★★★★★
Natalia is in her final semester at college, and wishes to prepare to secure a full - time Web developer position upon graduation. She believes potential employers will be favorably impressed by the...

Answered: 1 week ago

Question

★★★★★
Which item would most likely be classified as a fixture once attached onto real property? Select one: A. Wooden fence B. Plasma 50 TV C. Refrigerator D. Countertop microwave

Answered: 1 week ago

Question

★★★★★
Which of the following is NOT a remedial measure to control business cycles. Question 3 options: Indirect measures Monetary measures Fiscal measures Physical measures

Answered: 1 week ago

Question

★★★★★
Leahy inc, has 10 customers that account for all of its $1,472,000 of net income. its activity-based costing system is able to assign all costs, except for $200,000 of general administrative costs,...

Answered: 1 week ago

Question

★★★★★
When carrying out the control process at MGT , Inc. s manufacturing plant, Sally focuses her attention on the few defective components produced on the assembly line. Although she is concentrating on...

Answered: 1 week ago

Question

★★★★★
Like the Beveridge model, there are no real cost controls in the Bismarck model, therefore long queues are a problem.

Answered: 1 week ago

Question

★★★★★
Patients in Bismarck model countries are able to choose which health care provider they see.

Answered: 1 week ago

Question

★★★★★
Nearly half of expenditures on health care in the US are government financed.

Answered: 1 week ago

Previous Question Next Question