## Evaluating the investment using return on capital employed, Financial Accounting

Assignment Help:

Evaluating the investment using return on capital employed:

Annual depreciation charge = 1500000/5 = \$300000

Average investment = 1500000/2 = \$750000

Average annual accounting profit = 1359529/5 = \$271906

Return on capital employed = 100 × (271906/ 750000) = 36%

Ever since the return on capital employed is greater than the hurdle rate of 20% the investment is financially acceptable.

#### Internal revenue service (irs), Explain:- Q.1 Explain the ways in which...

Explain:- Q.1 Explain the ways in which the needs of internal and external users of accounting information are the same and different. Q.2 Why is it important for financial sta

#### Calculation of leverage ratios, Calculation of Leverage ratios  - ...

Calculation of Leverage ratios  -                     2008 2009 2010 U EBIT or Oper

#### What is permanent negotiating machinery, Q. What is Permanent Negotiating M...

Q. What is Permanent Negotiating Machinery? Two Federation of Union All Indian Railway men's federation (AIRF) & National Federation of Indian Railway (NFIR) men have been reco

#### How to determine the depreciation, How to determine the depreciation To...

How to determine the depreciation To determine depreciation in straight-line method, take cost of the asset, less the trade-in value, and divide by the estimated years of usefu

#### Clean opinion in auditor''s work, Unqualified Opinion - AUDIT opinion not q...

Unqualified Opinion - AUDIT opinion not qualified for any material scope restrictions nor departures from GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). AUDITOR may issue an unqu

#### Bond yield, If I bought a 10 year bond five years ago for 936.05. The bons ...

If I bought a 10 year bond five years ago for 936.05. The bons make semiannual coupon payments at a rate of 8.4%. If the current price of the bonds is 1,048.77, what is the yield e

#### Leslie, My trial balance is off by \$304 and I can''t find my error

My trial balance is off by \$304 and I can''t find my error

#### System x is judged to have high risk, Allied Managed Care Company is evalua...

Allied Managed Care Company is evaluating two different computer systems for handling provider claims. There are no incremental revenues attached to the projects, so the decision

#### Accounts required-bankruptcy and liquidation, ACCOUNTS REQUIRED This ca...

ACCOUNTS REQUIRED This can be summarized depending on the nature of the situation. In a receivership you may be required to prepare a receivers receipt and payments. In the pro

#### Return on equity, profit margin 2.5%, equity multiplier 2.0,sales \$50000, c...

profit margin 2.5%, equity multiplier 2.0,sales \$50000, common equity \$25000.compute return on common equity.

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!