(a) Year A fleet of buses is purchased for 1,000,000. Each year the buses allows the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) Year A fleet of buses is purchased for 1,000,000. Each year the buses allows the business to generate the revenues below. There are also maintenance costs which must be deducted to get net revenues. 0 day of purchase 1 2 3 4 5 Totals Costs -1,000,000 -10,000 -12,000 -13,000 -14,000 -12,000 Revenues 0 250,500 350,000 400,000 375,000 310,000 Net Revenues Net Profit (a) Calculate the ARR (Average Rate of Return) for this bus acquisition project. [10] (a) Year A fleet of buses is purchased for 1,000,000. Each year the buses allows the business to generate the revenues below. There are also maintenance costs which must be deducted to get net revenues. 0 day of purchase 1 2 3 4 5 Totals Costs -1,000,000 -10,000 -12,000 -13,000 -14,000 -12,000 Revenues 0 250,500 350,000 400,000 375,000 310,000 Net Revenues Net Profit (a) Calculate the ARR (Average Rate of Return) for this bus acquisition project. [10]
Expert Answer:
Answer rating: 100% (QA)
To calculate the Average Rate of Return ARR for the bus acquisition project ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
This case study on project evaluation is applicable for beginning courses in corporate finance or finance strategy. Two alternative investment options are available to evaluate. Challenges are...
-
8. A 12-tur square wire loop of 1-m length carrying a current of 1-A in the counter clockwise direction as shown in the figure. A magnetic field of magnitude 3000 G is directed into the board. Find,...
-
Design a 75- microstrip line on a 1.2-mm thick-duroid (r = 2.3) substrate. Find the width of the conducting strip and the phase velocity.
-
There are many companies that implemented online HRD programmes during the Covid-19 pandemic lockdown. Explain the advantages and disadvantages to the companies and employees if online HRD programmes...
-
It is impossible to motivate, only to demotivate. Discuss.
-
Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 100. The projected demand,...
-
Brand/Background :Roundnet is a net sport-inspired primarily by concepts from volleyball. It was originally created in 1989 by Jeff Knurek although the equipment he created for the game became...
-
Use the from step b) to compute the monthly excess outperformance (or underperformance in case the number is negative) of Fund X. The formula is: RX - RVG (as a reminder Rx and Rvg are excess returns...
-
1- Carnitine acyl transferase I is inhibited by the following: a) Acyl-CoA b) Malonil-CoA c) Fumarate d) Malonate
-
Alladin Company purchased Machine #201 on May 1, 2015. The following information relating to Machine #201 was gathered at the end of May. Price \($85\),000 Credit terms 2/10, n/30 Freight-in costs $...
-
On January 2, 2015, MacCloud Co. issued a 4-year, 100,000 note at 6% fixed interest, interest payable semiannually. MacCloud now wants to change the note to a variable-rate note. As a result, on...
-
Su Company acquired an excavator on January 1, 2013, for 10,000 (all amounts in thousands). This excavator represents the companys only piece of equipment, and Su chooses revaluation accounting. This...
-
On January 1, 2014, Tsang Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of Tsangs HK\($5\) par value ordinary shares at a price of...
-
On January 1, 2015, Magilla Inc. granted share options to officers and key employees for the purchase of 20,000 of the companys 10 par ordinary shares at 25 per share. The options were exercisable...
-
S Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,800,000 jeans in...
-
Suppose you need to answer any four of seven essay questions on a history test and you can answer them in any order. a. How many different question combinations are possible? b. What is the...
-
At the date the parent acquires a controlling interest in a subsidiary, if the carrying amounts of the subsidiarys assets are not equal to fair value, explain why adjustments to these assets are...
-
On January 1, 2011, Devco acquired cum div. all the shares of Brooke, at which date the equity and liability sections of Brookes statement of financial position showed the following balances: Share...
-
What is meant by foreign currency risk for a company?
-
You work in the customer relations department of a company that makes plumbing supplies. The head of product development has just handed you the draft of installation instructions for a sliding tub...
-
Form small groups for this exercise on claim and adjustment letters. Have each member of your group study the following two letters. Meet and discuss your reactions to the two letters. How...
-
Study the excerpt from the Micron data flyer (2010, p. 9). Describe the designers use of alignment as a design principle. How effective is it? How would you modify it? Present your analysis and...
Study smarter with the SolutionInn App