The plant manager at Automaton Robotics is looking at the summarized incremental rate of return information shown
Question:
The plant manager at Automaton Robotics is looking at the summarized incremental rate of return information shown below for five mutually exclusive alternatives, one of which must be chosen. The table includes the overall ROR and the incremental comparison of alternatives. Which alternative is best if the minimum attractive rate of return is
(a) 15% per year
(b) 12% peryear?
Transcribed Image Text:
Incremental Rate of Re turn, % Overall Alternative Cost, $ ROR, % A B C D First -80,000 14 -60,000 16 12 12 1 17 24 14 23 21 -40,000 17 1435 29 30,000 12 17 23 35 17 20,000 8 24 2 29 17
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
a Rank alternatives E D C B A eliminate ED and A because overall ...View the full answer
Answered By
Shaira grace
I have experience of more than ten years in handing academic tasks and assisting students to handle academic challenges. My level of education and expertise allows me communicate eloquently with clients and therefore understanding their nature and solving it successfully.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Five mutually exclusive alternatives are being considered for providing a sewage-treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows: Which plan,...
-
The plant manager at Aros Industries would like to quickly determine the payback period for a new $250,000 machine that she is contemplating purchasing. If she estimates benefits of $62,500 in the...
-
Anna de Noailles, the plant manager at Electro-Sons, calls Pauline Eluard, the plant controller, into her office. She had just finished reviewing Eluard's report on the financial benefits from...
-
At fiscal year-end December 31, 2015, Shop-World had the following assets and liabilities on its balance sheet (in millions): Current liabilities ............ $9,459 Long-term debt .................
-
Let be the fraction of the basis-set correlation energy obtained by a CI-SD calculation on a molecule with n electrons. Sasaki showed that an approximate equation satisfied by is -1 - 1 = 1/2 n - ,...
-
(NB: Consult the examples in Chapter 7 if needed). An amusement park will introduce a new pricing scheme before the next season. It wants to set an entrance fee and a fee for each ride in the park. A...
-
Explain why rational subgrouping should be used in constructing control charts.
-
1. Identify the management, organization, and technology factors responsible for slow adoption rates of internal corporate social networks. 2. Why have each of the companies described in this case...
-
Come-Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its products are processed independently, a few are related, such as...
-
Several years ago, Brian formed Sigma Corporation, a retail company ineligible for the U.S. production activities deduction. Sigma uses the accrual method of accounting. In 2015, the corporation...
-
Five mutually exclusive revenue alternatives that have infinite live s are under consideration for increasing productivity in a manufacturing operation. The initial costs and cash flows of each...
-
The U.S. Bureau of Reclamation is considering five national park projects shown below, all of which can be considered to last indefinitely. At a MARR of 7.5% per year, determine which should be...
-
Do federal wage laws take precedent over state wage laws?
-
how could a government or world leader have used ERM to respond to one of the financial, operational, or governance aspects of the covid19 pandemic? include references for further reading.
-
Computing and Interpreting Return on investment Selected operating data for two divisions of Outlook Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales: $4,000,000...
-
Consider a parcel of land that contains an even ages stand of trees currently of age in A in t=0. you have to decide how much longer to allow this stand to grow given that when you cut the stand, you...
-
What does the company report for the following accounts for the most current fiscal year:Enter your answer in thousands.a . Cash$fill in the blank 1 1 , 1 5 4 , 8 6 7 b . Short - term investments (...
-
Consider the translational mechanical system with a nonlinear spring shown below. The spring is defined by s(t)=ks(t), where x(t) is the spring length and f(t) the spring force. Nonlinear spring 0000...
-
The historical cost convention looks backwards but the going concern convention looks forwards. Required: (a) Explain clearly what is meant by: (i) the historical cost convention; (if) the going...
-
Classify each of the following activities as proper or prohibited under the various consumer statutes you have studied. a. Calling a hospital room to talk to a debtor who is a patient there. b....
-
How do we use DRAMA to keep customer relationships alive?
-
An engineer who believes in save now; play later wants to retire in 30 years with $2.0 million. At 8% per year interest, the amount the engineer will have to invest each year (starting in year 1) to...
-
The cost of tuition at a large public university was $390 per credit hour 5 years ago. The cost today (exactly 5 years later) is $585. The annual rate of increase is closest to: (a) 5% (b) 7% (c) 9%...
-
The Gap has some of its jeans stone-washed under a contract with Vietnam Garment Corporation (VGC). If VGCs estimated operating cost per machine is $26,000 for year 1 and it increases by $1500 per...
-
QUESTION 3 A business owns seven flats rented out to staff at R500 per month. All flats were tenanted Ist january 21 months rent was in arrears and as at 31st December 14 months' rent wa Identify the...
-
1. 2. 3. Select the Tables sheet, select cells A6:B10, and create range names using the Create from Selection button [Formulas tab, Defined Names group]. Select cells B1:F2 and click the Name box....
-
Tropical Rainwear issues 3,000 shares of its $18 par value preferred stock for cash at $20 per share. Record the issuance of the preferred shares. (If no entry is required for a particular...
Study smarter with the SolutionInn App