Question

If a manufacturer of electronic devices invests $600,000 in equipment for making compact piezoelectric accelerometers for...

If a manufacturer of electronic devices invests $600,000 in equipment for making compact piezoelectric accelerometers for general purpose vibration measurement, estimate the rate of return from revenue of $250,000 per year for 10 years and $86,000 in salvage value from the used equipment sale in year 10.

The rate of return is

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Zachary is making an equipment change at his company. An old piece of equipment, with a...
Zachary is making an equipment change at his company. An old piece of equipment, with a salvage value of $60,000, is being replaced by new equipment. The new equipment costs $980,000 and would have a 10 year useful life and no salvage value. By replacing the equipment, Zachary will save $164,000 per year in cash operating costs. The simple rate of return on this investment is:
Company X is a mail-order firm that sells customized electronic equipment. Company X is considering replacing...
Company X is a mail-order firm that sells customized electronic equipment. Company X is considering replacing its manual ordering system with a computerized system that it believes should result in more efficient operations and increased sales. The computerized system will cost $10 million, has an expected 10-year useful life, and has an estimated salvage value of $250,000. The class will remain open after the project ends, and after the disposal, there is still a positive balance for the UCC. The...
Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on...
Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $500,000 long-term loan from Gulfport State Bank, $100,000 of which will be used to bolster the Cash account and $400,000 of which will be used to modernize equipment. The company’s financial statements for the two most recent...
Average Rate of Return Lakeland Company is considering the purchase of equipment for $140,000. The equipment...
Average Rate of Return Lakeland Company is considering the purchase of equipment for $140,000. The equipment will expand the Company's production and increase revenue by $35,000 per year. Annual cash operating expenses will increase by $10,000. The equipment's useful life is 10 years with no salvage value. Lakeland uses straight-line depreciation. The income tax rate is 35%. What is the average rate of return on the investment? Do not use negative signs with your answers. Increase in revenue Answer Increase...
Electronics Inc. buys and sells photocopy equipment that are used in businesses across Ontario. The company...
Electronics Inc. buys and sells photocopy equipment that are used in businesses across Ontario. The company follow IFRS. Unit selling prices range from $10,000 to $100,000. Electronic Inc. sells a photocopy system to Centennial College on September 10th, 2020. The selling price for the photocopy equipment is usually $85,500. - Electronic Inc. will also install the photocopy system. The estimated fair value of installing the photocopy system is $2,700. Electronic Inc. will also provide one year of maintenance service for...
Bowman Corporation is considering an investment in special-purpose equipment to enable the company to obtain a...
Bowman Corporation is considering an investment in special-purpose equipment to enable the company to obtain a five-year government contract for the manufacture of a special item. The equipment costs $500,000 and would have no salvage value when the contract expires at the end of the five years. Estimated annual operating results of the project are as follows. Revenue from contract sales $ 700,000 Expenses other than depreciation $ 400,000 Depreciation (straight-line basis) 100,000 500,000 Increase in net income from contract...
Matheson Electronics has just developed a new electronic device that it believes will have broad market...
Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information: a. New equipment would have to be acquired to produce the device. The equipment would cost $318,000 and have a six-year useful life. After six years, it would have a salvage value of about $18,000. b. Sales in units over the next six years are projected to be as follows:...
The following relates to a proposed equipment purchase: Cost $ 156,000 Salvage value $ 4,500 Estimated...
The following relates to a proposed equipment purchase: Cost $ 156,000 Salvage value $ 4,500 Estimated useful life 4 years Annual net cash flows $ 52,100 Depreciation method Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: Multiple Choice $52,100 $14,225 $15,350 $89,975 $50,975 Poe Company is considering the purchase of new equipment costing $81,000. The projected net cash flows are $36,000 for the first two years and $31,000 for years...
AJ Manufacturing is considering buying a new conveyor belt system. Below are the expected net annual...
AJ Manufacturing is considering buying a new conveyor belt system. Below are the expected net annual cash flows from the first 11 years of operations. Year 1: 157,250 Year 2: 160,380 Year 3: 165,440 Year 4: 170,500 Year 5: 200,375 Year 6: 225,370 Year 7: 300,470 Year 8: 310,500 Year 9: 315,250 Year 10: 320,350 Year 11: 345, 220 There would be an initial investment of $1,250,000 to purchase the system. It would also require assembly and set up fees...
Joey's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing...
Joey's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking Joey's Favorite Bread. The oven and equipment would cost $150,000 delivered and installed. It would be usable for about 15 years, after which it would have a 10% scrap value. The following additional information is available. Joey estimates that the purchase of the oven and equipment would allow the pizza parlor and restaurant to bake and sell 90,000 loaves of crazy bread...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT