-----
-----
Please answer all parts correctly and I will rate thumbs up thank you!
What is the average accounting rate of return (ARR) on a piece of equipment that will cost $1,224,000 and that will result in pretax cost savings of $388,000 for the first three years and then $286,000 for the following three years? Assume that the machinery will be depreciated to a salvage value of 0 over six years using the straight-line method and the company's tax rate is 32 percent. (Round final answer to 1 decimal place, e.g. 527.5.) Average accounting rate of return % If the acceptance decision is based on the project exceeding an ARR of 20 percent, should this machinery be purchased? The machinery 4 be purchased. West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perform these inspections will cost $563,000 and will generate cash flows of $197,000 over each of the next five years. If the cost of capital is 12 percent, what is the MIRR on this project? (Round final answer to 1 decimal place, e.g. 527.5.) MIRR % You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 13.00 percent semiannual coupon bonds are selling at a price of $1,206.98. These bonds are the only debt outstanding for the firm. (a1) X Your answer is incorrect. What is the current YTM of the bonds? (Round final answer to 2 decimal places, e.g. 15.25%.) YTM 10.22 % e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer Using multiple attempts will impact your score. 50% score reduction after attempt 2 What is the average accounting rate of return (ARR) on a piece of equipment that will cost $1,224,000 and that will result in pretax cost savings of $388,000 for the first three years and then $286,000 for the following three years? Assume that the machinery will be depreciated to a salvage value of 0 over six years using the straight-line method and the company's tax rate is 32 percent. (Round final answer to 1 decimal place, e.g. 527.5.) Average accounting rate of return % If the acceptance decision is based on the project exceeding an ARR of 20 percent, should this machinery be purchased? The machinery 4 be purchased. West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perform these inspections will cost $563,000 and will generate cash flows of $197,000 over each of the next five years. If the cost of capital is 12 percent, what is the MIRR on this project? (Round final answer to 1 decimal place, e.g. 527.5.) MIRR % You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 13.00 percent semiannual coupon bonds are selling at a price of $1,206.98. These bonds are the only debt outstanding for the firm. (a1) X Your answer is incorrect. What is the current YTM of the bonds? (Round final answer to 2 decimal places, e.g. 15.25%.) YTM 10.22 % e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer Using multiple attempts will impact your score. 50% score reduction after attempt 2
