Compute the simple rate of return

Assignment Help Accounting Basics
Reference no: EM13325435

Wallingford MicroBrew

The management of Wallingford MicroBrew is considering the purchase of an automated bottling machine for $96,800. The machine would replace an old piece of equipment that costs $34,000 per year to operate.

The new machine would cost $18,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $10,000. The new machine would have a useful life of 11 years with no salvage value.

Required:

Compute the simple rate of return on the new automated bottling machine. Use straight-line depreciation method. (Round your percentage answer to one decimal place.

Reference no: EM13325435

Questions Cloud

Find the maximum speed attained by the mime : A bungee jumping mime is attached to a bungee cord 25.0 m long. The mime is in freefall until he gets to the end of the bungee, Find the maximum speed attained by the mime
Complete a project based on the national health service : You will complete a Project based on the National Health Service (NHS) within the UK. One of the original goals put forth in The NHS Plan: A Plan for Investment, a Plan for Reform was to build more than 100 new hospitals.
With what speed was the homework hurled : A disgusted physics student wads up her homework and throws it downward into a trash can. with what speed was the homework hurled
Calculate and display the total income of the abc car shop : Write an algorithm in structured English (pseudocode) that describes the steps required to perform the task specified. Some examples of pseudocode can be found at http://www.unf.edu/~broggio/cop2221/2221pseu.htm.
Compute the simple rate of return : Compute the simple rate of return on the new automated bottling machine. Use straight-line depreciation method. (Round your percentage answer to one decimal place.
What is the electric field midway between the two charges : Two point charges each have a value of 30.00 x 10^-3 and are separated by a distance of .04m what is the electric field midway between the two charges
Estimate the costs of such things as rent : Estimate the costs of such things as rent, gasoline, food, etc. in your local area and decide how far the amount of money shown in the chart would go in taking care of a family of four.
What would be the total annual cash inflows : What would be the total annual cash inflows associated with the new truck for capital budgeting purposes and find the internal rate of return promised by the new truck. (Round discount factor(s) to 3 decimal places and final answer to the closest i..
Discuss the application of true cost pricing to oil : Discuss the application of true cost pricing to oil. What might the true cost of oil be? At what price of gas would drivers in the U.S. seriously change their driving habits?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the market price of the bond

Bond Valuation. A tax- exempt bond was recently issued at an annual 7 percent coupon rate and matures 30 years from today. The par value of the bond is $5,000.

  Pension plan of brady company

The following information is available for the pension plan of Brady Company for the year 2010.

  Tax loss carryforward and valuation allowance

What are some examples of positive and negative evidence used to establish the need for a valuation allowance for a tax loss carryforward? What is the effect of the valuation allowance on the free cash flow forecast?

  Cost method in the preparation of a consolidated workpaper

S Company earned $840,000 evenly throughout the year and declared a dividend of $300,000 on November 1. What is the amount needed to establish reciprocity under the cost method in the preparation of a consolidated workpaper on December 31, 2011?

  Briefly describe the content of the reference

Briefly describe the content of the reference and how it relates to your course project. Anonymous authors or web pages are not acceptable. At least three of those sources used should be from academic journals and/or professional publications...

  What effect would reclassification have on general fund

The governmentalunit's enterprise. What effect would this reclassification have on the General Fund and the Enterprise Fund, respectively?

  Adjustment made to cost of goods sold

At December 31, balances in Overhead are as follows: Lott Company-debit $1,500, Perez Company-credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.

  Prepare dimsum corporation income statement

Prepare Dimsum Corporation's income statement for 20x3, including earnings per share, assuming a weighted average of 200,000 shares of common stock outstanding for 20x3.

  Revenues and gains in the statement of activities

Which of the following items would not be reported in the section on revenues and gains in the statement of activities of a private college or university?

  Results in a concentrated product

An alcohol solution contains 6% ethanol by mass. This solution is fed to a distillation process which results in a concentrated product (90% ethanol by mass) and an "ethanol free" product (0.005% ethanol by mass).

  Which basis of allocating the cost is most likely

If the cost of ZZ is allocated to the X and Y products on the basis of the number of gallons produced, how much of the total cost of the 400 drums should be charged to each product?

  Equivalent units in process for direct materials

Determine the equivalent units in process for direct materials and conversion costs, assuming there was no beginning inventory.

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