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The expected average rate of return for a proposed Investment of $6,630,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years,
The expected average rate of return for a proposed Investment of $6,630,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $19,890,000 over the 20 years, is (round to two decimal places) Oa. 15.00% Ob. 1.50% Oc. 30.00% Od. 60.00% Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.15 and sold for $64.30. A finished desk can be sold for $74.00. The additional processing cost to complete the finished desk is $6.30. Prepare a differential analysis. Round your answers to two decimal places. Differential Analysis Sell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Sell Unfinished Process Further into Differential Desks Finished Desks Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues per desk Costs per desk Profit (loss) per desk Should the company sell unfinished desks or process further and sell finished desks? Oficina Bonita Company should
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