The expected average rate of return for a proposed investment of $702,100 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $371,360 for the 4 years is (round to two decimal places) a.1.06% b.26.45% c.13.22% d0 53%

Q: A company is considering a 3-year project with a projected net income of sh. 4M, 6M,5M in year 1,…

A: Accounting rate of return is one of the techniques of the capital budgeting analysis. This technique…

Q: 1. Compare the following alternatives on the basis of Present worth Analysis at an interest rate of…

A: Present Worth Analysis: It is a technique of analysis in which the cash flows of a project are…

Q: Merrill Corp. has the following information available about a potential capital investment Initial…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset,…

A: In this problem the relevent details are given that cost is $90000 with no residual value and life 4…

Q: A with a total investment value of Rp. 500,000,000,- The ect is 5 years old. Based on the…

A: Net present value is the difference between present value of cash flow and initial investment of the…

Q: The amount of the estimated average income for a proposed investment of $60,000 in a fixed asset,…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: The expected average rate of return for a proposed investment of $694,300 in a fixed asset with a…

A: Given, Investment = $694,300 Residual life = 0 Total net income = $377,920 Useful life = 4 years

Q: Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000…

A: Depreciation expense = ( Cost - salvage value ) / Useful life

Q: The expected average rate of return for a proposed investment of $6,960,000 in a fixed asset, using…

A: Formulas: Average net income = Expected income / Number of years ----------------------- Average…

Q: A challenger asset with a maximum useful life of 6 years has a first cost of $43,000 and an…

A: Equivalent uniform annual cost comprise of annual equivalent uniform of first cost less annual…

Q: A project has an initial cost of $16,780 and a 3-year life. The company uses straight-line…

A: Average Accounting Return:  The average accounting return (ARR) is the method of determining the…

Q: The expected average rate of return for a proposed investment of $649,000 in a fixed asset with a…

A: Average rate of return = Average net profit / Average investment

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A: Average Rate of Return = Annual Return / Average Investment

Q: June Co. is evaluating a project requiring a capital expenditure of $620,000. The project has an…

A: (a) Average rate of return = Average net income/Average investment x 100            = 37,500/310,000…

Q: Merrill Corp. has the following information available about a potential capital investment Initial…

A: Net Present Value(NPV) is excess of PV of inflows over PV of outflows whereas IRR is rate that…

Q: (3) The expected average rate of return for a proposed investment of $771,700 in a fixed asset with…

A: Average Rate of Return = Annual Return / Average Investment

Q: 1/McAfee Automobiles Manufacturing are considering two alternative investment proposals with the…

A: Accounting rate of return used evaluate by dividing net income by average investment. We can measure…

Q: The amount of the average investment for a proposed investment of $115,000 in a fixed asset with a…

A: Average Rate of Return = Annual Return / Average Investment

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A: Average net income = $237,920 / 4 = $59,480 Initial investment = $589,600

Q: An anticipated purchase of equipment for $500,000 with a useful life of 8 years and no residual…

A: Payback period is calculated by dividing the cost of investment by the annual cash flow until…

Q: A project produces annual net income of $15,250, $18,700, and $21,750 over three years,…

A: The average accounting rate of return is calculated as ratio of average income over life of project…

Q: The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a…

A: Return on Investment = Average Annual Income / Average Investment

Q: B Company is considering two alternative ways to depreciate a proposed investment. The investment…

A: For computing the PV Factor value, the formula mathematically can be used is:

Q: Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: The expected average rate of return for a proposed investment of $5,240,000 in a fixed asset, using…

A: Solution..   Total income = $10,480,000    Life = 20 years  Average annual income  = Total income ÷…

Q: A firm is considering an investment in new equipment that has the following information. Purchase…

A: Accounting Rate of Return is a capital budgeting method that is determined by dividing the average…

Q: The expected average rate of return for a proposed investment of $44,000 in a fixed asset using…

A: Calculate average rate of return.

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A: IRR is a techniques under Capital budgeting which help in decision making by calculating the return…

Q: The expected average rate of return for a proposed investment of $446,000 in a fixed asset with a…

A: Average rate of return :— Average Rate of Return is the average annual amount of Cashflow generated…

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Q: Given the following information, what is the financial break-even point? Initial investment =…

A: Given that: Fixed cost=$58000 price=$130 variable cost per unit=$95 Thus formula of financial break…

Q: A company must invest in one of two alternatives. Alternative Alternative B A Initial Cost $774,542…

A: Here, MARR is 5.80% Investment Period is 4 years

Q: The amount of the average investment for a proposed investment of $147,000 in a fixed asset with a…

A: Formula: Average investment = (Initial value of investment + Closing value of investment) / 2

Q: 3. An investment of $500,000 generates an annual income of$150,000 over the next4 years with a…

A: Present worth is an equivalence method of analysis in which estimated cash flows are discounted…

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A: The answer is b. Average rate of return= Average profit per annum/ Net initial investment Where…

Q: Assume a situation in which a company has an existing asset, A, that has a current net book value…

A: Given Data   Current net book value (NBV) of asset A $300,000 Estimated salvage value of asset…

Q: An interest rate of 15% is used to evaluate a new system that has a first cost of $212,400, annual…

A: The present worth is the sum of the discounted cash flows of the project.

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A: Depreciation expense per year: Straight depreciation expense per year = Cost-Salavage valueUseful…

Q: The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a…

A: Average rate of return = Average annual profit / Average investment where, Average annual profit =…

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A: Average Rate of Return Method :   In this method first average profits is computed then this amount…

Q: What is the project's profitability index rounded to two decimal places?

A: Profitability Index is method of evaluating investment. It is also known as ratio of profit to the…

Q: The following information is available for a potential capital investment. Initial investment…

A: Profitability index is ratio of the present value of cash flow to the initial investment of the…

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A: Depreciation is an accounting method that spreads the cost of a measurable or physical asset over…

Q: The following information Company: available for a potential investment for Rose   Initial…

A: NPV = P36224 Initial investment = P80000

Q: ute annual rate of return, nayback period, and net at value. 2, 5), AP E24-10 Vilas Company is…

A: Payback period is the amount of time required to recover initial investment. it can be calculated…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.