FREE Trial

You are considering an investment that costs $2,000. It is expected to have a useful life of three years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year

You are considering an investment that costs $2,000. It is expected to have a useful life of three years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3. If you hope to make at least a 10% rate of return on your investment ($2,000), what should be the minimum revenue in year 3?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
  • Tutor Answer

PW10 2000 1…View the full answer


answer-question
Related Book For  answer-question
Contemporary Engineering Economics

Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

See More Books
Posted Date: April 21, 2016 06:47:06
See More Questions

Students also viewed these Accounting questions

Q:
Suppose you are a risk-averse decision maker with a utility function given by U(I) = 1 - 10I-2, where I denotes your monetary payoff from an investment in thousands. You are considering an investment...
A:
If you do not make the investment your utility is 1 1082 084375 If you make the investm......
Q:
You are considering an investment of $300,000 in either Project A or Project B for West Coast Studios Inc. In discussing the two projects with an advisor, you decided that, for the risk involved, an...
A:
1 2 The timing of net cash flows to be received from a capital investment proposal is important beca......
Q:
You are considering an investment of $360,000 in either Project A or Project B for Lion Studios Inc. In discussing the two projects with an advisor, you decided that, for the risk involved, a return...
A:
1 2 The timing of net cash flows to be received from a capital investment proposal is important beca......
Q:
The formula F(x) = 3x + C gives a different function for each value of C. All of these functions, however, have the same derivative with respect to x, namely F(x) = 3. Are these the only...
A:
ANSWER No these are not the only differentiable functions whose deriv......
Q:
What types of unfair employment practices are prohibited by the Civil Rights Act of 1964 as amended?
A:
The unfair employment practices prohibited by the Civil Rights Act of 1964 as amended includ......
Q:
Nixon Corporation manufactures computer monitors. The following data give the numbers of computer monitors produced at the company for a sample of 30 days. a. Calculate the values of the three...
A:
The ranked data are 20 22 23 23 23 23 24 25 26 26 27 27 27 28 28 29 29 31 31 31 32 33 33 3......
Q:
Cheryl incurred $8,700 of medical expenses in November 2022. On December 5, the clinic where she was treated mailed her the insurance claim form it had prepared for her with a suggestion that she...
A:
Cheryl should consider the following tax issues If she receives reim......
Q:
Equipment acquired on January 6, 2013, at a cost of $425,000, has an estimated useful life of 16 years and an estimated residual value of $65,000 a. What was the annual amount of depreciation for the...
A:
a 2013 depreciation expense 22500 425000 65000 16 2014 depreciation expe......
Q:
You are given the following information on Kaleb's Kickboxing: Profit margin Capital Intensity ratio Debt-equity ratio Net Income Dividends 7.1% rate 0.75 0.60 $48,000 $13,000 Calculate the...
A:
The sustainable growth rate can be calculated using the following formula Sustainable Growth......
Q:
Caden Healey is a realtor. He organized the business as a corporation on December 16, 2017. The business received $60,000 cash from Healey and issued common stock. Consider the following facts as of...
A:
Req 1 Caden Healey Realtor Inc Balance Sheet December 31 2017 ASSETS LIABIL......
Q:
Consider the cash flows of a certain project given in Table P7.25. TABLE P7.25 n Net Cash Flow 0................................ -$150,000 1................................ 465,000...
A:
a Apply the net investment test using i 1......
Q:
Agdist Corporation distributes agricultural equipment. The board of directors is considering a proposal to establish a facility to manufacture an electronically controlled "intelligent" crop sprayer...
A:
The present worth of the......
Q:
The resonance structures of carbon monoxide are shown below. Show how each structure can be converted into the other using the curved-arrow notation. :C-: :C=0:
A:
Interconversion of......
Q:
Are ray initials longer or shorter than fusiform initials? Can they undergo both periclinal and anticlinal divisions or just one or the other?
A:
Ray initials are shorter than fusiform initials in the context of the vascular cambium in plan......
Q:
It must be difficult for secondary growth to arise by evolution. How many times has it evolved in the 420 million years that vascular plants have been in existence? How many of those have become...
A:
Secondary growth also known as secondary thickening or wood formation is a process that occurs in ce......
Q:
Woody plants are almost always perennial plants, often living for many years. Describe some advantages of this with regard to a plants ability to occupy a favorable site. Describe some disadvantages...
A:
Advantages of Perennial Woody Plants Longevity Woody plants being perennial can live for many years or even decades This longevity allows them to establish deep root systems which in turn helps them a......
Q:
In basal angiosperms and eudicots, what types of cells occur in the axial system? What is the only type of cell present in the rays of eudicots? The wood of eudicots is called...
A:
In both basal angiosperms and eudicots a subgroup of flowering plants the axial system refers to the primary conducting tissues of the stem primarily......
Q:
Are fusiform initials parenchyma cells, collenchyma cells, or sclerenchyma cells? Do they have chloroplasts, chromoplasts, or proplastids?
A:
Fusiform initials are not parenchyma cells collenchyma cells or sclerenchyma c......
Q:
Consider the NFL data in Exercise 12-21. (a) Find 95% confidence intervals on the regression coefficients. (b) What is the estimated standard error of Y|x0 when the percentage of completions is 60%,...
A:
a The computer output follows The output is used to obtain estimates of the coefficients and s......
Q:
How can you tell from the vertex form y = a(x - h) 2 + k whether a quadratic function has no real zeros?
A:
The vertex form of a quadratic function is y ax h2 k where h......
Q:
The ledger of Sagovic Rental Agency on March 31 of the current year includes the selected accounts on page 206 before adjusting entries have been prepared. An analysis of the accounts shows the...
A:
1 Mar 31 Depreciation......
Q:
Adam Singh, D.D.S., opened an incorporated dental practice on January 1, 2012. During the first month of operations the following transactions occurred: 1. Performed services for patients who had...
A:
1 Jan 31 Accounts Receivable 760 Service Revenue 760 2 31 Utilities Expense 4......
Q:
Adam Singh, D.D.S., opened an incorporated dental practice on January 1, 2012. During the first month of operations the following transactions occurred: 1. Performed services for patients who had...
A:
1 Jan 31 Accounts Receivable 760 Service Revenue 760 2 31 Utilities Expense 4......
Q:
Canviar Corp. maintains its financial records using the cash basis of accounting. As it would like to secure a long-term loan from its bank, the company asks you, as an independent CPA, to convert...
A:
a Canviar Corp Income Statement Cash Basis For the Year Ended December 31 2015 2016 Sales......
Q:
Canviar Corp. maintains its financial records using the cash basis of accounting. Because it would like to secure a long-term loan from its bank, the company asks you, as an independent CPA, to...
A:
a Canviar Corp Income Statement Cash Basis For the Year Ended December 31 2018 2019 Sales......
Q:
Latta Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Latta Corp. requests you as its independent CPA to convert...
A:
a LATTA CORP Income Statement Cash Basis For the Year Ended December 31 2011 2012 Sales 290......
Q:
Antonio Banderos & Scarves makes headwear that is very popular in the fall/winter season. Units sold are anticipated as: October .......... 1,250 November ......... 2,250 December ......... 4,500...
A:
Antonio Banderos and Scarves a Units Sold Units Produced Change in Inventory Endi......
Q:
Compute the correlation coefficient for the data in Exercise 9.14. Is this correlation significant, and what does it mean to say that it is (or is not) significant?
A:
Correlation for the data in Exercise 914 With 26 df we would need a correla......
Q:
Carrie Ross is the Managing Partner of Ross, Sells, and Young, LLP, a mid-sized CPA firm. She has just finished reviewing the firms detailed income statement for the previous quarter. The statement...
A:
1 It is usually easier to offer extra services to existing clients than to obtain new clients One of the issues Ross Sells and Young will have to cons......
Q:
What are two ways to search a database to collect evidence?
A:
Two common ways to search a database to collect eviden......
Q:
A shop sign weighing 245 N is supported by a uniform 155-N beam as shown in Fig. 9-54. Find the tension in the guy wire and the horizontal and vertical forces exerted by the hinge on the beam. 35.0...
A:
The beam is in equilibrium Use the conditions of equilibrium to calculate the tension in......
Q:
You just completed troubleshooting a server role issue with the help of the Setup event log. How will you save the events shown in the event log for future reference?
A:
Open Event Viewer Press Win X and select Event Viewer from the menu that appears Navigate to the Set......
Q:
A technology company sells a complex computer program. It promises customers that it will provide updates and virus protection for three years from the date of sale. Upon signing the contract, the...
A:
a Under the current IFRS 15 and ASC 606 standards the company appears to be prematurely recognizing revenue on the computer program component of the c......
Q:
The shareholders' equity section of Emerson Corporation as at December 31, 2014, follows: Net income of$24 million for 2014 reflects a total effective tax rate of25%. Included in the net income...
A:
Rainy Day Umbrella Corporation Statement of Changes in Equity For the Year Ended December 31 2014......
Q:
At December 31, 2014, Tres Hombres Corporation had the following shares outstanding: 10% cumulative preferred shares, 107,500 shares outstanding.$10,750,000 Common shares, 4,000,000 shares...
A:
Net income Income from continuing operations before tax 23650000 Income tax 30 7095000 Income from c......
Q:
A refrigeration system operates on the ideal vapor-compression refrigeration cycle with ammonia as the refrigerant. The evaporator and condenser pressures are 200 kPa and 2000 kPa, respectively. The...
A:
An ideal vaporcompression refrigeration cycle uses ammonia as the refrigerant The volume flo......
Q:
What is the main role of network analyzers/network monitoring tools? How do network monitoring aid in enterprise cybersecurity planning? Name 4 criteria on which businesses should choose the relevant...
A:
The main role of network analyzersnetwork monitoring tools is to observe and analyze network traffic devices and performance to ensure optimal functio......
Q:
On 30 June 2020, ABC Limited had an item of plant with an original cost of $100000 and accumulated depreciation of $20000. At this date, the fair value of the plant was $90000. The net effect of the...
A:
When a company revalues its property plant and equipment PPE to fair value in accordance with accoun......
Q:
Moving from managing a physical network to configuring a cloud network requires a significant shift in your understanding of network concepts and the way you think about creating network connections....
A:
Moving from managing a physical network to configuring a cloud network indeed involves a significant shift in understanding and approach Here are some......
Q:
What are some security issues (especially data security issues) in 5G?. In connection with cloud network and 5G network, review the prominent approaches to safeguard the data.
A:
Security is a significant concern in 5G networks especially regarding data security Below are some of the key security issues in 5G networks followed by prominent approaches to safeguard data in the c......
Q:
Outline the steps of the prosecution of a crime and note all associated constitutional protections at each appropriate step. This question asks you to review the steps of criminal procedure
A:
The prosecution of a crime in the United States involves a series of steps governed by criminal procedure laws and constitutional protections Here is an outline of the key steps in the criminal prosec......
Q:
To raise the temperature of an object, must you add heat to it? If you add heat to an object, must you raise its temperature? Explain.
A:
If we increase the temperature of an object we have......
Q:
From the choice of simple moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? please write it in word...
A:
Taking about simple moving average exponential smoothing and linear regression analysis Moving Avera......
Q:
Prepare the journal entry to record income taxes on December 31, 2011, assuming that Turner Corporations income tax expense is $35,000 and that it owes $30,000 in income taxes to the government....
A:
2011 Dec 31 Income Taxes Expense 35000 Deferred Income Taxes......
Q:
Fitzgerald Corp. reports pretax accounting income of $210,000, but because of a single temporary difference, taxable income is only $155,000. At the beginning of the year, no temporary differences...
A:
Answer 1 Reported Pretax Income Taxable Income Income 210000 155000 Tax rate 40 40 Tax Pay......
Q:
At the beginning of the year (January 1), Buffalo Drilling has $ 11,000 of common stock outstanding and retained earnings of $ 8,200. During the year, Buffalo reports net income of $ 8,500 and pays...
A:
Buffalo Drilling Statement of Stockholders Equity Co......
Q:
Consider the following chair conformation of bromocyclohexane: (a) Identify whether the bromine atom occupies an axial position or an equatorial position in the conformation above. (b) Draw a...
A:
a The bromi......
Q:
Terry is the credit manager of Heltex Ltd. He is concerned that the pattern of monthly sales receipts shows that accounts receivable collection is poor compared with budget. Heltex's sales manager...
A:
Although the credit manager is responsible for ensuring that c......
Q:
When 3-bromocyclopentene is treated with HBr, the observed product is a racemic mixture of trans-1,2-dibromocyclopentane. None of the corresponding cis-dibromide is observed. Propose a mechanism that...
A:
Br En......
Q:
In what ways does the sprint retrospective meeting support project monitoring and control?
A:
The sprint retrospective is based on the lean philosophy of continuous improve......
Q:
Elliott Company, a manufacturer of tennis rackets, started production in November 2011. For the preceding 5 years, Elliott had been a retailer of sports equipment. After a thorough survey of tennis...
A:
a Product Costs Cost Item Direct Materials Direct Labor Manufact......
Q:
Discussthe general requirements governing the deductibility of gifts; (5 Marks) whether an expense incurred after cessation of business is deductible for purposes of s 8-1 of the Income Tax...
A:
1 Deductibility of Gifts 5 Marks The deductibility of gifts in Australia is governed by Section 3015 of the Income Tax Assessment Act 1997 ITAA 1997 A......
Q:
On November 1, 2017, the account balances of Hamm Equipment Repair were as follows. During November, the following summary transactions were completed. Nov. 8 Paid $1,700 for salaries due employees,...
A:
a c e Cash No 101 Date Explanation Ref Debit Credit Balance Nov 1 8 10 12 20 22 25 29 Balance P J1 J1 J1 J1 J1 J1 J1 3620 3100 600 1700 2700 400 1700 2400 700 4320 7420 4720 4320 2620 3220 Accounts Re......
Q:
Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Karas buildings has a book value of $400,000...
A:
Solution Deferred tax liability to be reported in bal......
Q:
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $800,000 and with an expected useful life of four years and no residual value. Assume that, for...
A:
To record the income taxes for the first year you need to ca......
Q:
What is meant by the term decentralization?
A:
Decentralization is a process that involves developing......
Q:
The Crush-a-Matic is the name of the car being designed by Bobby and his friends for the local destruction derby next spring. They plan on working on this project after work and on weekends between...
A:
A To determine the critical path for the project we need to identify the longest sequence of activit......
Q:
J. Electronics offers its customers a $100 discount on the purchase of a table fan, when they buy a HP printer at the same time. The normal selling price of table fan is $600, (3 Marks) whereas HP...
A:
The table fan would be allocated 100 or 10 of the transaction price while the HP printer would be al......
Q:
Determine the period cost for 2022 The following cost data pertains to Great Grains Inc. for December 31st, 2022 Ending Raw Materials Inventory: $160,000 Beginning Work-in-Process: $40,000 Ending...
A:
Based on the image the following are the period costs for 2022 Depreciation expense 100000 Amortiza......
Q:
Create a class that contains all prior functions, you must convert the functions to methods of that class (do not create static methods, see the lesson for the correct way to create a class) Test the...
A:
Your code appears to be mostly correct However there are a few minor issues to address In the Calcul......
Q:
The following table represents the credit sales of Blossom Foods for the first five months of the current year: Month January February March April May Credit Sales $40900 $54700 $46400 $50400 $54800...
A:
The expected collection pattern for Blossom Foods is as follows......
Q:
On January 1, 2011, Shaylyn Limited issued $2.5 million of face value, 10-year, 7% bonds at par. Each $1,000 bond is convertible into 15 common shares. Shaylyn's net income in 2011 was $250,000, and...
A:
a Net income 250000 Add Interest savings net of tax 175000 X 1......
Q:
ABC company leased new advanced computer equipment to STU Ltd on 1 January 2019.STULtd has to pay annual rental of $290,000 starting at 1 January 2019. It is a four years lease with ultimate rental...
A:
a The arrangement is Finance lease Reasons 1 Lease grants the lessee an option to purchase the under......
Grubers SAT Word Master The Most Effective Way To Learn The Most Important SAT Vocabulary Words 1st Edition - ISBN: 1402220103 - Free Book