Calculate the accounting rate of return

Assignment Help Finance Basics
Reference no: EM131624127

Given the following information calculate the Accounting Rate of Return (ARR gross).

Outlay = 100000

Annual Cash Flow = 70000 per year over four years

Life = 4 years

Rate = 0.12, as a decimal

Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage.  Enter the % symbol e.g. 17% Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.

Reference no: EM131624127

Questions Cloud

Describe the four types of societal resources : Explain Scarcity and Limited Resources in your own words. Identify and describe the four types of societal resources and give examples of each.
Calculate the stock price of shares : You own 500 shares of Ups & Downs, Inc., stock. It is currently priced at $50. You are going on vacation, and you realize that the company will be reporting.
What is the net present value of project : Stone Inc. is evaluating a project with an initial cost of $9,500. what is the net present value of the project?
What is the bank cost of preferred stock : What is the bank's cost of preferred stock? (Show your work and round your answer to two decimal places).
Calculate the accounting rate of return : Given the following information calculate the Accounting Rate of Return (ARR gross).
Discuss a woman offers to sell her automobile to a buyer : A woman offers to sell her automobile to a buyer for $10,000. The automobile is a certain brand, model, year, color
Explain reducing federal governments discretionary powers : Explain Reducing federal government's discretionary powers. Evaluate both the advocates' position and the critics' position.
Calculate to the nearest dollar : Calculate the Annual Equivalent (AE). Your textbook calls this EAV, Equivalent Annual Value. Calculate to the nearest dollar.
Which plant would provide the most economical power : Which plant would provide the most economical power? WHAT IS PLANT C'S annual equivalent of the depreciation tax shield?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain how the cost of capital influences the mncs

determine how the cost of capital influences the mncs international financing decisions. how would proper risk

  What is the gain or loss on the futures contract

The face value of the bond is $1000, and the semi-annual coupon payments are $30. The annual coupon rate on the bonds is $60 per bond (or 6%). The futures contract has 100 bonds.

  Julie is bowwing 12800 to purchase a car the loan terms are

julie is bowwing 12800 to purchase a car. the loan terms are 36 months at 7.5 percent interest. how much interest will

  Average mortgage rates for atlanta

A mortgage specialist would like to analyze the average mortgage rates for Atlanta.

  One year ago hp corporate bonds with 8 year maturity

One year ago HP corporate bonds with 8 year maturity purchased at 98.1,annual coupon rate 2.65%,price sold at today 99.75,we have collected all interest payments in this one year. total return of Investment? and what type of return is it? expe..

  Unadjusted historical costs

Question: The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value.

  What is lifelines current days sales outstanding dso also

1. explain the rational for each of the four variables that make up a firms credit policy. how likely and how quickly

  Discuss the transactions of sundance systems

July 5 Purchases 20 laptop computers on account from Red River Supplies for $1,500 each, terms 3/10, n/30.

  Identify the specific resources of this process

Your choice of recommended control plans should come from this chapter plus any other control plans from Chapters 9 through 11 that are germane to your company's process.

  Assume an annual coupon but 20 years remaining to maturity

barkley corportation has a bond issue outstanding with an annual coupon rate of 7 and years remaining until maturity.

  What is the future value

What is the future value of $1,400, placed in a savings account for four years if the account pays 8.00%, compounded quarterly? (Your answer should be correct to two decimal places)

  What is the yield to maturity

Thatcher Corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8 percent coupon rate, paid semiannually. The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050. What is the yi..

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!

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