User Account

All Pages

Calculate accounting rate of return

Assignment Help Accounting Basics
Reference no: EM133162581

Question - Crane Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The company's tax rate is 34 percent.

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

$127,450

$176,875

$247,455

$254,440

$271,125

Expenses

$141,410

$128,488

$137,289

$145,112

$139,556

Crane will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent.

Required - Calculate accounting rate of return.

Reference no: EM133162581

Questions Cloud

Key features of an ergonomic office environment : The key features of an ergonomic office environment?
Explain three major theories of personality : Explain three major theories of personality and discuss how each can be applied when looking at consumer behavior.
Perceptions and arrangement of the theme : Perceptions and arrangement of the theme: Consists of the branch of knowledge of one's advantage and following that branch of knowledge to direct subject-relate
Analysis of quantitative coding approaches : An analysis of quantitative coding approaches is that such coding sorts subjective information into predefined (nomothetic) classifications that are intelligent
Calculate accounting rate of return : Crane will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent. Calculate accounting rate of return
Relationship between big data and marketing analytics : What is marketing analytics? What is the relationship between big data and marketing analytics? Discuss four types of marketing analytics in detail.
What is its return on stockholders equity : It turns over its fixed assets 3.6 times per year. Its return on sales is 4.8 percent. It has $1,750,000 of debt What is its return on stockholders' equity
Economic liberalization and globalization : "Growth of strategic HRM in organization is primarily due to economic liberalization and globalization." Comment.
Why does this suggestion need to be adopted : 1. Explain how the suggestion is going to apply to the current problem based on the text below

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd