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kvv77 [185]
2 years ago
13

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $18,000,

would be replaced by a new machine. The new machine would be purchased for $414,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $143,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
Ugo [173]2 years ago
8 0

Answer:

Multiple choices are:

18.5%

16.7%

34.6%

15.9%

The correct option is the last one,15.9%

Explanation:

The simple rate of return is the annual incremental net savings divided by the initial investment.

The annual incremental net savings is the annual savings recorded from the new process minus annual depreciation charge.

annual savings is $143,000

depreciation charge=cost of new equipment-salvage value of old equipment/useful life of the new equipment

depreciation charge=($414,000-$18,000)/6=$66,000

simple rate of return=$66,000/$414,000=15.9%

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When bringing to market a new product like the MotorolaOne Zoom, the actual product launch takes place in the __________________
AnnZ [28]

Answer:

Option E: Commercialization

Explanation:

The marketplace is simply dynamic and undergoes different changes and the demand rate for products is also do change. Companies evaluate their already made or existing product line, update it and tries to fit into the standard of their consumers.

In the new product development strategies, companies makes a unique new product development strategy to limit the overuse of time and resources through the method of, organize planning and research, understanding what customer really want thereby definitely resourcing of the said project.

In commercialization, it entails the new product launching procedures (processes). It usually needs heavy promotion and product distribution throughout the network.

6 0
1 year ago
Crafty Cookbooks Inc. is a large publisher that focuses on developing cookbooks with recipes from around the world. Recently, si
Gekata [30.6K]

Answer:

Job enlargement strategies increase job satisfaction more than job rotation strategies

Explanation:

The job enlargement refer to do multiple task at the same time. It includes more responsibilities and duties at the same level in the organization so that the employee cant bore from their day to day work. It reduces the boredom of the employees at the time time it also focuses on the employee satisfaction level.

Whereas the job rotation means the switching of job from one job to another so that they grow in near by future.

In the given situation, the Crafty cookbooks change its working way due to which many employees are frustrated which results into the quitting of job, firing of employees, etc that represents the job enlargement with job satisfaction and more than job rotation  

8 0
2 years ago
Perine, Inc., has balance sheet equity of $6 million. At the same time, the income statement shows net income of $906,000. The c
Oksanka [162]

Answer:

The target stock price in year 1 is $51.12

Explanation:

Given SE = $6 MIL, NI= $906 000, Div= $408180, Shares= 200000, PE ratio= 24 , SP =?

W e will use the price earning ratio as we are are given the benchmark PE ratio and this ratio measures the stock price relative to it profits

PE = Stock price / Earnings per share

Need to calculate Earnings per share

EPS = net Income - dividends/ oustanding Shares

       =906000-480180/200000

         =$2.1291/$2.13

Sustitute in the formula for PE ratio

24 = Stock Price/2.13

Stock Price = $51.12

Therefore the target stock price in year 1 is $51.12

5 0
2 years ago
You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. T
jasenka [17]

Answer:

E. The aftertax salvage value is $81,707.76.

Explanation:

The computation is shown below:

Accumulated depreciation is

= $287,000 × ( .2 + .32 + .192 + .1152)

= $237.406.40

Now the book value is

= Purchase value - accumulated depreciation

= $287,000 - $237,406.40

= $49,593.60

And, the selling value is $99,000

So after tax salvage value is

= Salvage value - (Salvage value - book value) × tax rate

= $99,000 - ($99,000 - $49,593.60) × 35%

= $81,707.76.

6 0
2 years ago
Balance sheets prepared under IFRS: Multiple Choice must list assets, but not liabilities in order of liquidity. may list assets
GrogVix [38]

Answer:

May list assets and liabilities from least liquid to most liquid.

Explanation:

According to International Financial Reporting Standards IFRS the companies may list their available assets and liabilities in descending order of most liquid to least liquid. It enables the users financial statements to easily assess the time assets will take to be converted into cash. Therefore cash is considered as most liquid and is first item to be presented on the Balance sheet of the company under current assets account.

5 0
2 years ago
Read 2 more answers
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