Question
Total Revenue = $36,000,000 Total Non-capital costs = $32,400,000 Capital Equipment purchase Price and Original Market Value = $15,000,000 Equipment Salvage in percent = 2%
Total Revenue = $36,000,000
Total Non-capital costs = $32,400,000
Capital Equipment purchase Price and Original Market Value = $15,000,000
Equipment Salvage in percent = 2%
Depreciable Life of the Capital, Years = 14
Annual return on capital invested in a similarly risky investment = 12%
Accounting Annual Profit = $1,050,000
How would I calculate the economic profits using the average annual opportunity cost of the capital?
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Fundamentals Of Cost Accounting
Authors: William Lanen
7th Edition
1264100841, 9781264100842
