If a proposed capital investment offered a $10,000 annual cash inflow after depreciation and the initial investment

Fantastic news! We've Found the answer you've been seeking!

Question:

If a proposed capital investment offered a $10,000 annual cash inflow after depreciation and the initial investment was $100,000 a) what is the Average Rate of Return (ARR) of this capital project idea? (show method of calculation)

b) explain if this is a project the organization is likely to go ahead with - why or why not?

Related Book For answer-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

See More Books

Posted Date: Apr 17, 2024 06:48 AM

See More Questions

1. Describe how short-term financial management can improve cash flow through the cash conversion process. 2. What functional area of the firm oversees short-term financial management? List the...
CoursHeroTranscribedText: A 5-year loan in the amount of $48,000 is to be repaid in equal annual payments. What is the remaining principal balance after the third payment if the interest rate is 5...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Explain how an antibody is able to recognize a specific antigen. (Include an explanation of an epitope in your answer.)
Find the Taylor polynomial for h(x) = cos(x) with the base point a = 0. Use your result to find Find the Taylor polynomial of degree n and the Taylor series for the above function. Add up the given...
What are the implications of the fluctuation theorem in understanding the statistical behavior of thermodynamic systems far from equilibrium, and how does it reconcile with the second law of...
Explain the issues involved in establishing ROI for T&D initiatives. What role do HRIS T&D applications play in establishing ROI?
Wasik Company had the following inventory balances at the beginning and end of August 2010: All raw material is direct to the production process. The following information is also available about...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year - end is December 3 1 . The unadjusted trial balance as of December 3 1 , 2 0 2 4...
Write a program in C++ that can create an air-traffic control system with base-class Aircraft and various derived types. Create a Tower class with a vector that sends the appropriate messages to the...
Missisauga is planning to bid for an 8-year government contract. The contract will pay Tk 30,000 next year. The payment will increase by Tk 2,000 every year until the final year. The equipment...
OT_2_1. Samsun Sandwich firm special a meeting for will do your sandwiches most economic the one that to determine wants. A total of five different sandwiches, including tuna fish, tuna fish and...
The cash-flows in Project A-E is in real terms considered to be constant over time. This means that all amounts provided above for Project A-E will nominally change over time since they will be...
As a financial consultant, you work with people who are planning to buy a new house. You want to create a worksheet containing variable data (the price of the house, down payment, date of the first...
Practice 2 Stock market (20 points) 1. Go to the Industry Center in Yahoo Finance! 2. Choose an industry and a specific company within this industry. 3. Briefly introduce the company you chose,...
Do you think that the implementation of a business is easier because of EC?
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
What is the activity in $\mathrm{Bq}$ and in $\mathrm{Ci}$ of a $2.0 \mathrm{mg}$ sample of ${ }^{3} \mathrm{H}$ ?
The activity of a sample of the cesium isotope ${ }^{137} \mathrm{Cs}$ is $2.0 \times 10^{8} \mathrm{~Bq}$. Many years later, after the sample has fully decayed, how many beta particles will have...
The technique known as potassiumargon dating is used to date volcanic rock and ash, and thus establish dates for nearby fossils, like this 1.8 -millionyear-old hominid skull. The potassium isotope...

If a proposed capital investment offered a $10,000 annual cash inflow after depreciation and the initial investment

Question:

Expert Answer:

Cost management a strategic approach

Students also viewed these finance questions