Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $48,300 and has an estimated $6,900 salvage value. QS 24-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation
Answers
The accounting rate of return for Peng Company's investment \(59.42%\)
Determine the annual depreciation: To do this, subtract the salvage value from the initial investment cost and divide the result by the number of years the investment will generate income.
Annual Depreciation = (Initial Investment - Salvage Value) / Years
Annual Depreciation\(= ($48,300 - $6,900) / 3\)
Annual Depreciation \(= $27,600\)
Annual Depreciation\(= $13,800\)
Calculate the annual average operating income: This is the net income after taxes that the investment will generate each year.
Annual Average Operating Income \(= $2,600\)
Determine the average investment: To do this, add the initial investment and the salvage value and divide the result by 2.
Average Investment Average Investment \(= ($48,300 + $6,900) / 2\)\(= $41,400 / 3\)
Average Investment = \($55,200 / 2\)
Average Investment = \($27,600\)
Compute the accounting rate of return: Divide the annual average operating income plus the annual depreciation by the average investment.
Accounting Rate of Return = (Annual Average Operating Income + Annual Depreciation) / Average Investment
Accounting Rate of Return \(= ($2,600 + $13,800) / $27,600\)
Accounting Rate of Return \(= $16,400 / $27,600\)
Accounting Rate of Return \(= 0.5942\) (rounded to four decimal places)
Convert the accounting rate of return to a percentage: Multiply the result by 100.
Accounting Rate of Return \(= 0.5942 * 100\)
Accounting Rate of Return \(= 59.42%\)
The accounting rate of return for Peng Company's investment is \(59.42%.\)
To know more about accounting visit here:
https://brainly.com/question/29108212
#SPJ11
Related Questions
What's the difference between product and brand?
Answers
Answer:
A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella. For example, Toyota's product is cars. ... Without a product, there is no need for a brand.
Which of the following statements regarding annuities is FALSE?
A. Most car loans, mortgages, and some bonds are annuities
B. PV of an annuity= C X 1/r (1- (1/ (1+r)^N)
C. An annuity is a stream of N equal cash flows paid at regular intervals.
D. The difference between an annuity and a perpetunity is that a perpetuity ends after some fixed number of payments
Answers
Answer:
Explanation:
The statement that is FALSE regarding annuities is D. The difference between an annuity and a perpetuity is that a perpetuity ends after some fixed number of payments. This statement is incorrect as the difference between an annuity and a perpetuity is that a perpetuity has an infinite stream of equal cash flows paid at regular intervals, while an annuity has a fixed number of equal cash flows paid at regular intervals.
An annuity is a financial product that involves a series of equal cash flows paid at regular intervals, usually monthly or annually. Examples of annuities include car loans, mortgages, and some bonds. The present value of an annuity can be calculated using the formula: PV of an annuity = C x (1 - 1 / (1 + r)^N) / r, where C is the cash flow, r is the discount rate, and N is the number of periods.
In contrast, a perpetuity is a financial product that involves an infinite stream of equal cash flows paid at regular intervals. The formula to calculate the present value of a perpetuity is PV of a perpetuity = C / r, where C is the cash flow and r is the discount rate.
Know more about annuity is a financial product here:
https://brainly.com/question/28332188
#SPJ11
The false statement regarding annuities is : The difference between an annuity and a perpetuity is that a perpetuity ends after some fixed number of payments.
An annuity is a series of equivalent cash flows that are produced or received at regular intervals over a fixed period. These payments can be made either now (annuity due) or later (ordinary annuity). The difference between an annuity and a perpetuity is that a perpetuity ends after some fixed number of payments is the false statement regarding annuities. A perpetuity is a unique form of an annuity, which implies a continuing and recurring income stream that will never end. Its payments continue indefinitely and do not have a fixed ending date as annuities do. In contrast, an annuity ends after a fixed number of payments. For instance, a life annuity stops paying after the recipient dies, while a term certain annuity stops making payments after a fixed period.
Learn more about annuity
https://brainly.com/question/17096402?
#SPJ11
Assume that a monopolist faces the demand schedule given below, and a constant marginal cost of $2 for each unit of output. To maximize profits, this monopolist would produce what number of units of output and charge what price per unit
Answers
the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit is known as marketing.
Answers
We can actually deduce here that it is true that the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit is known as marketing.
It is actually international marketing.
What is marketing?Marketing is actually known to be the business activities that involves creating and delivering value to the target market. These values created and delivered by the company must resonate on their goods and services.
We see here that a good marketing strategy will definitely increase the the sales volume of the company.
Thus, the above statement is true.
The complete question is:
The performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit is known as marketing.
TrueFalseLearn more about marketing on https://brainly.com/question/25369230
#SPJ1
Imagine that you are reading one of your favorite magazines. if you see a logo and recognize the brand as it is being presented to you, this is an example of
Answers
Assuming you see a logo and recognize the brand as it is being presented to you, this is an example of Aided recall.
What is aided recall?Aided recall can be defined as the process in which a person is being asked a question partaining to the advertisement he/she saw.
Aided recall in important as it help to create product awareness and it enables people to recognize a brand based on the advert they saw and to showcase their knowledge about the advert when asked.
Inconclusion this is an example of Aided recall.
Learn more about Aided recall here:https://brainly.com/question/24106562
the number/type of people in a buying center largely depends on blank______
Answers
The number/type of people in a buying center largely depends on **the complexity and significance of the purchasing decision**.
The concept of a buying center refers to the group of individuals within an organization who are involved in the decision-making process for a particular purchase. The composition of the buying center can vary depending on the nature of the buying decision.
In simple and routine purchasing decisions, the buying center may be small and include only a few individuals. For example, in a small business, the owner or manager might be the sole decision-maker responsible for selecting and purchasing supplies or equipment.
However, in more complex and significant purchasing decisions, the buying center tends to be larger and involve individuals from different departments or functions within the organization. This is because such decisions often require a comprehensive evaluation of various factors, such as technical specifications, financial considerations, legal aspects, and the impact on different departments or stakeholders.
The specific individuals involved in a buying center can vary based on the nature of the purchase. It may include representatives from departments like finance, operations, procurement, marketing, technical experts, and senior management. Each individual brings their expertise, perspective, and influence to the decision-making process.
Therefore, the number and type of people in a buying center are influenced by the complexity and significance of the purchasing decision, as organizations strive to involve relevant stakeholders who can contribute to a well-informed and comprehensive decision.
Learn more about purchasing decision here:
https://brainly.com/question/30166151
#SPJ11
What is his overall message to marketers?
Answers
How responsible should sport/event organizations, celebrities, and athletes be for keeping their various publics happy? We know that good publicity boosts goodwill and profits. But, should individuals have to keep their personal beliefs private so they won’t offend anyone? For example, some musicians may highlight their political views on stage at their concerts. Or, an athlete may make comments in an interview that could offend certain groups. Perhaps he’s an avid hunter, a hobby that some animal rights activists would certainly not support. What do you think? Where should celebrities and athletes draw the line between building fan support and being true to themselves?
Answers
Answer:
I dont really know
Explanation:
1. Being offered opportunities to prosper in your career.
A. Physiological
B. Esteem
C. Belongingness
D. Self- actualization
2. Gaining positive attention from your manager after a presentation.
A. Physiological
B. Esteem
C. Belongingness
D. Self- actualization
3. Having a salary that allows you to adequately feed your family.
A. Physiological
B. Esteem
C. Belongingness
D. Self- actualization
4. Alderfer combined the needs for gaining positive attention from your manager and having opportunities to prosper in a career into the categor of ________ needs.
A. Growth
B. Relatedness
C. Existence
Answers
1. Opportunities to prosper in a career matches a need for esteem.
2. Gaining positive attention from your manager after a presentation represents the need for esteem.
3. Having a salary that allows you to adequately feed your family corresponds to physiological needs.
4. The combination of the manager's needs to get positive attention and opportunities to thrive in a career is related to relationship needs.
What is Maslow's hierarchy of needs theory?It is based on the belief that all human needs are arranged in a hierarchical relationship that, when achieved, is able to direct the satisfaction and motivation of individuals, defining the concept of Maslow's pyramid, whose human needs are defined as:
Physiological needsSecurity needSocial needsEsteem needsSelf-actualization needsTherefore, the hierarchy of needs theory is a psychological theory widely used in human resource management to understand employee needs and motivation.
Find out more about Maslow here:
https://brainly.com/question/1785981
what are factors affect demand for labour
Answers
The factors that effect demand for labour are:
The quantity of a produt that labor produces
A change in the production process that uses more or less labor
A change in goverment policy that effects the quantity of labor
- Define authority and explain what this looks like in your organisation. - Explain 2 advantages and 2 disadvantages of authority when meeting the aims of your organisation. (be very specific on this as this will help gain a distinction.)
Answers
-Authority is the power or right to give orders and make decisions. -2 advantages of authority are establishes order-stability and facilitates faster decision-making. 2 disadvantages of authority are inhibits creativity and lead to micromanagement.
In an organisation, authority is the power that held by management and leadership roles, who are responsible for setting goals and direction, making decisions, and directing activities.
Advantages of authority are establishes order and stability, authority helps maintain a consistent and predictable structure, which allows people to understand their roles and responsibilities. Facilitates faster decision-making, authority enables the leader or manager to make decisions quickly, without having to consult with the team or seek approval from higher management.
Disadvantages of Authority are Inhibits creativity and innovation, when decisions are made by one individual or a small group, it can lead to a lack of creativity and innovation in the organisation. Can lead to micromanagement, without proper delegation and guidance, authority can lead to micromanagement, which can cause stress and frustration among employees.
Learn more about decision-making at:
https://brainly.com/question/3919020
#SPJ11
fatima purchased a new mattress when it was on sale. the sale price was 33% less than the regular price. if the sale price was $370, what was the original price?
Answers
560 was the original price.
What was the original price?Original cost is the sum spent to purchase an object at its outset. This cost is taken into account to cover the costs of purchasing the item, transporting it to the location where it will be utilized, installing it, and testing it. Sales taxes and other levies are also a part of the original cost. The marked price or list price is the amount that appears on a product's label. This is the price that the product will be sold for. But this price might be discounted in some way, and the product's real selling price might be less than the advertised price.
Let x be the original price
27% off
original price minus discount = new price
x - .27x = new price
.73x = new price
.73x = 409
Divide each side by .73
.73x/.73 = 409/.73
x=560.2739726
To the nearest dollar
x = 560
To learn more about cost refer to:
https://brainly.com/question/25811981
#SPJ4
Miguel is NOT very self-aware. How will this MOST likely affect his upcoming job search process?
A.
He will be able to clearly state what he is looking for in a future career.
B.
He will be offered several high-paying jobs that he will love.
C.
He will be able to find a great job that suits his goals and skills.
D.
He will have a tough time finding a job that fits his interests.
Answers
Answer:
D. He will have a tough time finding a job that fits his interests.
Explanation:
The other answers require a sense of self-awareness.
True/False: Uncertainty is unavoidable, so identify and manage it.
Answers
True. Uncertainty is a constant part of life, and it is impossible to completely eliminate it. However, uncertainty can be managed by identifying the potential risks and taking steps to mitigate them.
This can be achieved through careful planning, developing contingency plans, and seeking expert advice. In addition, being adaptable and flexible can help individuals and organizations to deal with unexpected situations that arise due to uncertainty. It is important to acknowledge that uncertainty can be uncomfortable and stressful, but learning to manage it can lead to better outcomes in the long run. Therefore, it is crucial to adopt a proactive approach towards uncertainty by staying informed, being prepared, and remaining vigilant. By doing so, individuals and organizations can minimize the negative impacts of uncertainty and navigate through challenging times with resilience and determination.
Learn more about life here :-
https://brainly.com/question/29677944
#SPJ11
do you agree with the marketing customer service mantra the customers is always right
Answers
Answer:
depemds
Explanation:
in jobs usually they tell the employee the customer is right to satisfy them and not lose customers but it is depending the situation
What are two major advantages and two major disadvantages of having unions in the United
States? Explain each advantage or disadvantage.
Answers
Answer:
two major advantages of unions:
1. we get more items from different countries
2. Unions promote higher wages and better benefits
two major disadvantages:
1. Labor unions discourage individuality
2. Unions can drive up costs as well as making it harder to promote and terminate workers.
a large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. this is an example of
Answers
a large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of Power within a marketing channel.
What is a channel power?The ability of one channel member to direct or affect the actions and behavior of another channel member is referred to as channel power. It can also refer to a channel member's potential to influence another channel member.Channel power is when one channel member tries to lead and assist other channel members.The person who fills this role is referred to as the channel captain.There are four different types of channel power: economic power, expertise, identification, and legitimate right.
To learn more about channel power refer,
https://brainly.com/question/28941172
#SPJ4
What are the remedial measures of unemployment in nepal?explain
Answers
According to the text, two major public policy and ethical issues in marketing research are
Answers
Two major public policy and ethical issues in marketing research are privacy and informed consent.
Privacy is a significant concern in marketing research as it involves the collection and analysis of personal information from individuals. It is essential for researchers to respect and protect the privacy of participants by ensuring that their personal data is handled securely and used only for the intended research purposes. This involves obtaining informed consent from participants, clearly explaining how their data will be collected, stored, and used, and providing options for opting out or withdrawing from the research.
Informed consent is another crucial ethical issue in marketing research. Participants should be fully informed about the purpose of the research, the potential risks and benefits involved, and any compensation or incentives provided. They should have the freedom to voluntarily participate or decline participation without any coercion or undue influence.
learn more about marketing research here:
https://brainly.com/question/14663280
#SPJ11
Coming into effect in 1994, NAFTA encouraged free trade between the United States and which two other countries? Question 4 options: a) Japan and China b) Canada and Mexico c) Panama and Brazil d) Canada and Cuba
Answers
NAFTA, or the North American Free Trade Agreement, came into effect in 1994 and encouraged free trade between the United States and two other countries B. Canada and Mexico.
NAFTA aimed to promote economic growth by reducing trade barriers and fostering investment between the three member countries. It eliminated most tariffs and other trade restrictions, allowing for the easier flow of goods and services across borders. As a result, businesses and consumers benefited from lower prices, increased trade, and enhanced competitiveness in the global marketplace. The agreement also facilitated cooperation in areas like environmental and labor regulations, setting standards that the member countries agreed to follow.
Overall, NAFTA has played a significant role in shaping the economic landscape of North America, contributing to increased trade and investment between the United States, Canada, and Mexico. Although the agreement has faced criticism for its impact on certain industries and job markets, it has also led to numerous benefits for businesses and consumers in the region. Therefore, the correct option is B.
The question was incomplete, Find the full content below:
Coming into effect in 1994, NAFTA encouraged free trade between the United States and which two other countries? Question 4 options:
a) Japan and China
b) Canada and Mexico
c) Panama and Brazil
d) Canada and Cuba
Know more about North American Free Trade Agreement here:
https://brainly.com/question/27372794
#SPJ11
Davis is planning to buy a bike. He has the full amount in his bank account. He does not want to pay any interest on his purchase. Which option(s) can Davis use when making the purchase
Answers
Answer:
C
Explanation:
why is maximum number of person in partnership business mentioned in companies act and not in partnership act
Answers
The Companies Act and the Partnership Act are two different laws that govern different types of businesses.
The companies act and partnership act-The Companies Act governs companies, which are separate legal entities from their owners, while the Partnership Act governs partnerships, which are not separate legal entities from their owners.
The maximum number of persons in a partnership business is not mentioned in the Partnership Act because there is no limit to the number of partners a partnership can have. However, the Companies Act limits the number of members in certain types of companies, such as private companies, to a maximum of 200 members. This is because companies are separate legal entities and the law seeks to regulate their operations to ensure that they operate in a manner that is fair and transparent to all members.
To know more about the partnership act -
https://brainly.com/question/994016
#SPJ1
Which is a good rule to follow when sending business emails? (1 point)
Answers
Answer:
Avoid forwarding spam and unnecessary messages such as chain letters.
Explanation: did the test
The good rule that must follow at the time of sending business emails is to avoid forwarding spam and unwanted texts like chain letters.
What is email?An email, is also called as the electronic mail. It is one of the most extensively employed features of the Internet, that is mostly used in the formal business organizations.
It allows a person to transport and acquire messages from nay person in the globe that has an email account. Within the TCP/IP suite, email uses a variety of protocols.
When sending business emails, a good tip to follow is to avoid forwarding spam and undesirable texts like chain letters.
Therefore, the use of formal languages and proper formats made the emails more accurate.
Learn more about the emails, refer to:
https://brainly.com/question/14666241
#SPJ2
If a study of past stock prices and volume to find mis-priced securities will not lead to gains in the market, then the market must be at least _____ efficient.
Answers
please hurry!! Review each of the investment opportunities provided by Earll Investments and Pima Financial Trading. In at least two to three paragraphs, write an analysis of these opportunities that answers the following questions. What are the true risks of each investment, and do the companies accurately describe these risks? What are the potential returns of each investment, and do the companies accurately describe these returns? Based on the evidence available to you, which investment opportunity is more likely to be fraudulent? please be original
Answers
Answer:
Pima Financial
Explanation:
Pima Fiancial Trading is the best investment because they do not claim, unlike Earll Investments, that a high reward is always available with little risk. This is nearly never the case because the higher the risk the higher the reward. Pima Financial Trading's graph rises steadily while Earll's fluctuates heavily. So Pima Financial is the best choice.
Looking at the given question, one can analyse that Pima Financial Trading is best because they do not offer high reward with little risk.
What is investment opportunity?Investment opportunity refers to tangible and intangible offerings that are given, sold or traded in order to earn profit or appreciation.
Thus, we can see that Pima Financial Trading has a steady rise in their trading graph.
Learn more about investment opportunity on https://brainly.com/question/19350374
#SPJ2
help please !! only answer if you know :) question is down below
Answers
Answer:
Credit Card
Explanation:
Credit card has all of your information on it so they usually ask for that.
the involvement of accounting professionals and management in accounting scandals resulted in congress passing the sarbanes-oxley act. what is the purpose of the sarbanes-oxley act? (select all that apply.)
Answers
The purpose of the Sarbanes-Oxley act is to provide penalties for violators; prevent conflicts of interest; require CEO accountability; regulate auditors.
In finance and economics, interest is payment from a borrower or deposit-taking economic organization to a lender or depositor of a quantity above compensation of the most important sum, at a selected rate. It's far distinct from a charge that the borrower may pay the lender or some third birthday celebration.
Interest is the monetary price for the privilege of borrowing money, typically expressed as an annual percentage rate (APR). Interest is the amount of money a lender or financial group gets for lending out cash.
Interest is defined as the quantity of cash paid for using someone else's money. An instance of the hobby is the $20 that was earned this 12 months to your financial savings account. An instance of the hobby is the $2000 you paid in the hobby this 12 months on your home mortgage.
Learn more about interest here https://brainly.com/question/24924853
#SPJ4
What activities will you need to complete after your orientation attendance is approved nsls.
Answers
Answer:
Once inducted, the student will receive a member T-shirt and pin, additional awards and scholarships. A stole and honor cords for graduation can be purchased on the NSLS webpage, and personalized letters of recommendation are available to any inducted member.
Once the Orientation attendance is approved you will need to complete: Leadership training day, Speaker broadcasts, and Networking teams.
What is orientation programme?Orientation program are programmes designed to guide students in answering all of these questions pertaining to activities on college campus. It is meant to enable the student settle quickly on the campus.
Orientation attendance is important because one would get to know the major landmarks and hidden corners of campus. Also, one would be able to meet with an academic advisor at orientation.
Therefore, once the Orientation attendance is approved you will need to complete: Leadership training day, Speaker broadcasts, and Networking teams.
Learn more about orientation attendance here : https://brainly.com/question/25170004
What is the gross income for a real estate agent in 2021?
Answers
Answer:
It depends on where you live and your experience level, but in the US a real estate agent can make approximately $82,898 a year, while you can expect to be paid around 15 to 30 thousand a year, within the first few years.
I hope this helps :)
once an improper payment is identified, the rac would contact the provider and notify them of an overpayment that they received. they would look to collect that amount from the provider, or an underpayment that the provider received from cms and pay that amount to the provider. this process is called:
Answers
Once an improper payment is identified, the rac would contact the provider and notify them of an overpayment that they received. they would look to collect that amount from the provider, or an underpayment that the provider received from cms and pay that amount to the provider. this process is called: automated review.
What is am improper payment?
Despite efforts to identify and address their underlying causes, improper payments—payments that should not have been made or that were paid in the wrong amount—have constantly been a problem for the entire government.
A payment that should not have been made or that was made in the wrong amount is referred to as an inappropriate payment. That covers overpayments, underpayments, or even payments made in the proper amount to the proper recipient but not strictly in accordance with the applicable law or regulation.
Read more on improper payments here:https://brainly.com/question/14914461
#SPJ1