Calculate the profitability of the following proposal using Returni on investr Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost: Material 60000 Labor 22000 Variable overheads 14000 O a. 4.62% O b. 16.53% O c. 3.42% O d. All the options are wrong

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 12E: Refer to Exercise 19.11. 1. Compute the payback period for each project. Assume that the manager of...
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Calculate the profitability of the following proposal using Return an investment method
Proposal I
Automatic machine
Cost
420000
Estimated life
6.5 years
Estimated sales p.a
175000
Cost : Material
60000
Labor
22000
Variable overheads
14000
O a. 4.62%
O b. 16.53%
O c. 3.42%
O d. All the options are wrong
Transcribed Image Text:Calculate the profitability of the following proposal using Return an investment method Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost : Material 60000 Labor 22000 Variable overheads 14000 O a. 4.62% O b. 16.53% O c. 3.42% O d. All the options are wrong
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