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

Question

1 Approved Answer

Sayer Tool Co. is considering investing in specialized equipment costing $640,000. The equipment tas a usetul ife of five years and a residual value of

image text in transcribed
Sayer Tool Co. is considering investing in specialized equipment costing $640,000. The equipment tas a usetul ife of five years and a residual value of $63,000. Depreciation is calculated using the straight - line method. The expected net cash inflows from the investment are given below What is the accounting rate of refurn on the invegtment? (Round your answer to two decimal places.) A. 9.91% e. 4.07% C. 894% D. 8,14%

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

Step: 3

blur-text-image

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

Business Accounting Uk Gaap Volume 1

Business Accounting Uk Gaap Volume 1

Authors: Frank Wood, Alan Sangster

1st Edition

0273718762, 9780273718765

More Books

Students also viewed these Accounting questions

Question

★★★★★
Water is pumped steadily out of a flooded basement at a speed of 5.0 m/s through a uniform hose of radius l.0 cm. The hose passes out through a window 3.0 m above the waterline. What is the power of...

Answered: 1 week ago

Question

★★★★★
Describe how the three core teamwork competencies (the ABCs of teamwork) as described by the Cannon-Bowers and Salas (2006) may promote team effectiveness.

Answered: 1 week ago

Question

★★★★★
A steel product is manufactured by starting with raw material ( carbon steel wire) and then processing it sequentially through five operations using machines A to E, respectively ( see table below)....

Answered: 1 week ago

Question

★★★★★
Closing the Balances in The Variance Accounts at the End of the Year Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit...

Answered: 1 week ago

Question

★★★★★
Your company currently has 6.25% coupon-rate bonds (coupons are paid semi-annually) with 10 years to maturity and a price of $1076 . If you want to issue new 10-year semi-annual coupon bonds at par,...

Answered: 1 week ago

Question

★★★★★
The pilot choke option: A. B. C. Is an orifice in the main pressure port of a two stage directional valve used to reduce flow to the system. Is a device that throttles the flow of pressurized fluid...

Answered: 1 week ago

Question

★★★★★
The well-insulated, rigid storage tank in the figure below contains air and carbon dioxide, separated by a moveable divider that allows for heat transfer to occur between the two gases. If the air...

Answered: 1 week ago

Question

★★★★★
53. The following are production and cost data for two products, buckets and pails, produced in batches of 600 each. Contribution margin per batch Machine set-ups needed per batch Buckets Pails $360...

Answered: 1 week ago

Question

★★★★★
Use the following is the equilibrium phase diagram for the iron-carbon system to answer the following questions. (Please round compositions to the nearest 0.1 wt.% in your answers and calculations)...

Answered: 1 week ago

Question

★★★★★
Allicyn is building a development dashboard. She discovers she needs to have more focus on factors that explain why certain decisions are made that affect her part of the supply chain. Which area is...

Answered: 1 week ago

Question

★★★★★
4 What barriers might be expected to the implementation of HRM? How might managers overcome such barriers?

Answered: 1 week ago

Question

★★★★★
=+What makes you participate with the brand? Is what you're developing exciting enough to capture your imagination?

Answered: 1 week ago

Question

★★★★★
2 I n view of your answer to the previous question, what issues should managers keep in mind when they are seeking to impart a company ethos to employees? Komatsu, the worlds second largest...

Answered: 1 week ago

Previous Question Next Question