Lender Limited is considering investing in a new project. It is estimated that it will cost 100,000
Question:
Lender Limited is considering investing in a new project. It is estimated that it will cost £100,000 to implement, and that the expected net profit after tax will be as follows:
No residual value is expected.
Required:
Calculate the accounting rate of return of the proposed project.
Transcribed Image Text:
Year 1 2 3 4 5 £ 18 000 47 000 65 000 65 000 30 000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
Lender Ltds accounting rate of return Accountin...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Accounting For Non-Accounting Students
ISBN: 9781292128979
9th Edition
Authors: John R. Dyson, Ellie Franklin
Question Posted:
Students also viewed these Business questions
-
A fund manager is considering investing in a new software firm based in India. The managers assessment of probabilities for rates of return on this stock over the next year is summarized in the...
-
A plant manager is considering investing in a new $30,000 machine. Use of the new machine is expected to generate a cash flow of about $8,000 per year for each of the next five years. However, the...
-
The Delaware Chemical Corporation is considering investing in a new composite material. R&D engineers are investigating exotic metal-ceramic and ceramic-ceramic composites to develop materials that...
-
Brothers Willie and Billie each own a gas station for the same national chain. As brothers, they are very competitive. They held a contest to see who could do a better job forecasting sales for their...
-
Number of classes: 6 Data set: Amounts (in dollars) spent on books for a semester Construct a frequency distribution for the data set using the indicated number of classes. In the table, include the...
-
Express the moment of the couple acting on the frame in Cartesian vector form. The forces are applied perpendicular to the frame. What is the magnitude of the couple moment? Take F = 50N. 3 m 1.5 m
-
If a company with a 12/31 year-end lends money in the form of a 6-month note on 11/1, which accounts will be credited when the note is paid off on 4/30?
-
1. How would you describe Charles Bests approach to leadership? 2. What type(s) of followers would work well with Charles Best? What type(s) of followers would not work well with Best? 3. Why is...
-
Describe how physician productivity might vary by how they are paid (e.g., salaried, fee-for-service, capitation rate). In economic terms, what features distinguish physician - firms from the...
-
6.18. Jolicoeur and Mosimann [12] studied the relationship of size and shape for painted tur- tles. Table 6.9 contains their measurements on the carapaces of 24 female and 24 male turtles. (a) Test...
-
What information is needed to adopt it?
-
What is the payback method of capital investment appraisal?
-
As a firm evolves from purely domestic into a true multinational enterprise, it must consider (1) its competitive advantages, (2) its production location, (3) the type of control it wants to have...
-
There is an electric dipole with dipole moment p above a grounded infinite conducting plane. The dipole is at distance h from the plane and rotated by with respect to the normal vector of the plane....
-
How do higher import restrictions affect private savings, domestic investment and government deficit in a country? Are import restrictions a good instrument for reducing a current account deficit?...
-
Here, you want to look at disasters such as radiological/nuclear, industrial/technological, and hazardous material spill disasters. In your post, describe the disaster you have chosen. At what point...
-
E.E. Schattschneider famously wrote that democracy would be impossible without political parties. Do you agree with his premise? If we did not have parties, how would majorities come together around...
-
Tran Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and...
-
Suppose are two solutions to the same iterative system u(k+l) = T u(k). (a) Suppose for some k0 > 0. Can you conclude that these are the same solution: for all kn. (b) What can you say if ? u) and uk)
-
How does Kant answer Humes bundle theory of self? Do you think he is successful?
-
Carmen has computed that her average tax rate is 16% and her marginal tax rate is 25% for the current year. She is considering whether to make a charitable contribution to her church before the end...
-
Why are the gift and estate taxes called wealth transfer taxes? What is the tax base for computing each of these taxes?
-
If an equation has more than one independent variable, we have to be careful when we interpret the regression coefficients of that equation. Think, for example, about how you might build an equation...
-
Convert the following ERDs to a Database schema. Follow all the steps in order as learned in this class. Identify PKs and FKs for each relation. Explain your work. Press esc to exit full screen Page...
-
How to draw a database in MS SQL Server for an entity with only a multivalued attribute and no primary key?
-
use Adventure Works Database Run each query and save the notebook with the results before submitting it. All the questions below are related to AdventureWorks database. make sure your notebook is...
Study smarter with the SolutionInn App