Question: Using the information, calculate the ARR: Average profit before depreciation $75 000, Annual depreciation $15 000, Period of investment 4 years, Initial investment $800 000,

Using the information, calculate the ARR: Average profit before depreciation $75 000, Annual depreciation $15 000, Period of investment 4 years, Initial investment $800 000, Value at end of the investment period $100 000.

Select one:

15 percent

16.67 percent

13.33 percent

18.75 percent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Fabric Plant: Budgeted overhead: $1,200,000 (50% fixed) Practical volume (direct labor hours): 120,000 hours Actual overhead: $1,150,000 (50% fixed) Actual hours worked: Weaving and Pattern Coloring...

1. If the business produced 10,000,000 units, the variable cost per unit is $4.05, the selling price per unit is $20, and the total fixed cost is $9,400,000. The contribution margin ratio is closest...

Using the following formulas provided answer the following: Formulas: Residual Income: EBIT -.(Required Rate of Return*Average Op Assets) EVA - WACC given: PAT-(WACC*Capital Employed) ROI = Margin *...

Using the formulas and charts provided to answer the following questions: Sam's Structures desires to buy a new crane and accessories to help move and install modular buildings. The machine sells for...

FIN201 Final Exam Sample MULTIPLE CHOICE. 1. Why will banks permit the use of an overdraft as suitable for funding the purchase of inventory that will quickly be converted into cash? A. To assist a...

Locate the 2020 Annual Reports (Form 10-K) for Tesla, Inc and Ford Motor Company on the Investor Relations section of the companies websites or sec.gov/edgar. Be sure to use the audited financial...

write all step by hand 12 13 03. ABC steel plant industry plans to manufacture a product. The product needs a special component. The industry has reviewed that the special component can be produced...

Question 1 Calculate the EVA for this organisation for the year ended 31/12/2014, using the following information: Year ended 31/12/2014 $m Profit before Depreciation 47 Depreciation (3) Profit after...

A private investor wants to perform major expansion on a private dormitory in which the information for existing and expansion case provided below. Your task is to analyze the profitability of...

Remaining Time: 1 hour, 59 minutes, 02 seconds. Question Completion Status: QUESTION 1 A firm is analysing its cash budget for june. Assuming its total cash receipts is $1170 and cash expenses is...

please help! Thank you!" There is nothing missing. This is it. Please respond showing formulas for a thumbs up. Thank you. Step Instructions 1 Complete the steps below using cell references to given...

The production supervisor of the Machining Department for Gilman Company agreed to the following monthly static budget for the upcoming year: Gilman Company Machining Department Monthly Production...

On May 1, B. Bangle opened Self- Wash Laundry. His accountant listed the following chart of accounts: Cash Supplies Prepaid Insurance Equipment Furniture and Fixtures Accounts Payable B. Bangle,...

Which of the following statements about an American call is least accurate? It can be exercised prior to expiration Its maximum value is the stock price tt puys diviotends Its time value decreases as...

Calculate the minimum and maximum takt time for the given

3. Imagine that, as an employer, you were no longer able to pay your staff. How would you motivate them?

4. What can an organisation do to ensure that its workers are fully engaged?

1. How might volunteering help the employer and the employee?