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Softa [21]
2 years ago
6

Copa Cabana Corporation is considering the purchase of a new machine costing $30,000. The machine would generate net cash inflow

s of $12,000 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Copa Cabana’s cost of capital is 12 percent. Copa Cabana uses straight-line depreciation. The investment's accounting rate of return on initial investment is: Select one: A. 10.27 percent B. 12.28 percent C. 20.00 percent D. 30.55 percent
Business
1 answer:
olga_2 [115]2 years ago
6 0

Answer:

C. 20.00 percent

Explanation:

The computation of the accounting rate of return is shown below:

The formula to compute the accounting rate of return is shown below:

= Annual net income ÷ initial investment

where,  

Annual net income is

= Net cash flows - depreciation expense

= $12,000 - $6,000

= $6,000

And, the initial investment is $30,000

So, the accounting rate of return on initial investment is

= $6,000 ÷ $30,000

= 20%

The depreciation expense is

= $30,000 ÷ 5 years

= $6,000

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Which of the following is a buyer's agent's task or duty?
Alenkinab [10]

Answer:

Representing the buyer's interests

Explanation:

Buyer's agents a person or a group which is hired to bid on a certain assets on behalf of the buyer. People usually use buyer's agent on expensive purchase such as properties, expensive antique, etc.

Buyer's agents are tied by an ethical code that they have to find the assets on the best price possible for the customers, without compromising the quality of the asset itself.

8 0
2 years ago
An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts
marysya [2.9K]

Answer:

c. 12%; 15.7%

Explanation:

The computations are shown below:

For expected rate of return:

= (Weightage of risky asset × return of risky asset) + (Weightage of treasury bill × return of treasury bill)

= (0.70 × 0.15) + (0.30 × 0.05)

= 10.5% + 1.5%

= 12%

For standard deviation:

= Weightage of risky asset × (variance ^ half)

= 0.70 × (0.05 ^ 0.5)

= 15.7%

7 0
2 years ago
U.S. company buys inventory from a supplier in Canada and pays for the inventory in Canadian dollars (C$). The inventory is conv
nataly862011 [7]

Answer:

A. The rate when the inventory was paid for

Explanation:

The U.S. company should register the inventory purchase in their balance sheet using the $/C$ exchange rate at that date the inventory was paid for since that would represent the actual monetary value spent on inventory. The rate is subject to change and, therefore, using the exchange rate at the time of delivery, sale or at the balance sheet date, could incorrectly represent the company's inventory expenses.

6 0
2 years ago
Fatima is struggling in her job and is experiencing increased dissatisfaction. She related to you that her manager has been unfa
oee [108]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is a psychological notion when an individual experiences thoughts and emotions that are not consistent (no matter the environment). In this example, it was expected from Fatima to quit her job (since she hated the manager). In spite of that, she continued to work. That caused the cognitive dissonance in her behavior, as she changed her attitude.

6 0
2 years ago
The chart shows the marginal cost and marginal revenue of producing apple pies.
Liula [17]

Answer:

The marginal cost will most likely increase to $2.00

Explanation:

Because I just did it.

7 0
1 year ago
Read 2 more answers
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