Finding the project average accounting return

Assignment Help Finance Basics

Reference no: EM131928422

Question: You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12380, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2118, $2624, $2765, and $2362 over these four years, what is the project's average accounting return (AAR)? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

Reference no: EM131928422

Questions Cloud

What is the built-in gains tax liability : An S corporation in Lawrence, Kansas has a recognized built-in gain of $110,000 and taxable income of $98,000. What is the built-in gains tax liability

What must be the one-year forward exchange rate : If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 12 percent.

Prepare the journal entries on the lessee books : Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments

Hassle-free ?gures that it will need to purchase : Hassle-Free Web is bidding to provide webpage hosting servioes for Hotel Lisbon. Hotel Lisbon pays its ounent provider $10 100 per year for hosting

Finding the project average accounting return : You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12380.

What amount should nevy corp report as current liabilities : Nevy Corp. has the following debt outstanding as of 12/31/2017. What amount should Nevy Corp. report as current liabilities on its 12/31/2017 balance sheet?

What is the current fair value of the call option : What is the value of p? What are the two values (cash flows) of the call option at maturity from top to bottom of the tree?

What is the amount of the check : Cleese Company sells merchandise on account for $5,000 to Langston Company with credit terms of 2/10, n/30. What is the amount of the check

Ifrs concerning reporting liabilities in crypto currencies : What are the requirements according to IFRS concerning reporting liabilities in crypto currencies (for example, the company Microsoft Corporation)?

User Account

All Pages