### Simple rate of return on the investment

Assignment Help Accounting Basics
##### Reference no: EM13129594

The management of Kissinger Corporation is investigating automating a process. Old equipment, with a current salvage value of \$23,000, would be replaced by a new machine. The new machine would be purchased for \$330,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save \$108,000 per year in cash operating costs. The simple rate of return on the investment is closest to:

a) 17.3%

b) 16.1%

c) 16.7%

d) 32.7%

#### Questions Cloud

 What mass of hcl is consumed by the reaction : What mass of HCl is consumed by the reaction of 3.84 mol of magnesium? Answer in units of g. Find out how any losses resulting from the activity : Find out how any losses resulting from the activity are treated under the passive activity loss rules Question about lebesgue integration : For what values of a in R (real numbers) is the function (1+x^2)^a in L^2. Let L^2 be like in Lebesgue integration where the set of all measurable functions that are square-integrable forms a Hilbert space, the so-called L2 space. What volume of hydrogen at stp is produced : what volume of hydrogen at STP is produced from the reaction of 50.0g of Mg and the equivalent of 75g of HCl? Simple rate of return on the investment : By automating the process, the company would save \$108,000 per year in cash operating costs. The simple rate of return on the investment is closest to: Explain original concentration of solution : To calculate the concentration of protein is it 10/990 or 10/1000? And does the original concentration of solution even matter when calculating the solution concentration? Find the ph : Find the pH of a 0.130 M solution of a weak monoprotic acid with a Ka value of 1.6 *10(to the power of -6) What is the journal entry that should be made : A firm lends \$10,000 for 5-years with no stated interest rate. The market rate of interest at the time would have been 5%. What is the journal entry that should be made a. at the time the money is loaned and b. at the end of the first year of the .. Convert cyclopentanol to cyclopentane : When (R)-2-butanol is treated with TsCl in pyridine,the product formed and Classify the reaction

### Write a Review

#### Is granger stokes using budgets as a planning and control

Is Granger Stokes using budgets as a planning and control tool?

#### How will the development above effect the accounting

What are several possible explanations for the markdown and slow sale of common waleth Edison's bonds?

#### Sources of gaap

Identify and describe the sources of generally accepted accounting principles. Identify source hierarchy and explain why the hierarchy is important.

#### Structure of federal income tax

What is the rate structure of the U.S. federal income tax? Analyze the progressive nature of the U.S. tax system and its consequences.

#### What is the margin of safety expressed

If Fama Company, with a break-even point at \$360,000 of sales, has actual sales of \$480,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.

#### Costs-saving-discount rates and net present value

A salesperson from a different computer company claims that his machine, which costs \$85,000 and has an estimated service life of four years, will generate annual savings for the city of \$32,000.

#### Current price of common stock

The last dividend paid by XYZ Company was \$1.00. XYZs growth rate is expected to be a constant 5 percent. XYZ's required rate of return on equity (ks) is 10 percent. What is the current price of XYZ's common stock?

#### Change in accounting method

At the beginning of 2011, Red decided to change the depreciation to the double-declining balance method. The residual value remains at \$4 million. Ignoring income taxes, what will be Red's depreciation expense for 2011?

#### Journal entries for intangible assets

The following transactions involve intangible assets of Penner Co occurring on or near Dec 31, 2004. Write journal entries needed at the date to record the transaction and at December 31, 2005 to record any resultant amortization. Write NA if no e..

#### Calculate the dollar amount of each type of service

Rapid Auto has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair.

#### Determine the amount to be recognized as depreciation

Stevenson Corporation acquires a one-year old building at a cost of \$500,000 at the beginning of Year 2. The building has an estimated useful life of 50 years.

#### Academic approach to stock price

The stock has a beta equal to 0.75. The risk-free rate is 5.0%, and the market risk premium is 5.5%. The stock's dividend is expected to grow at some constant rate g. The stock currently sells for \$50 a share. Assume that the market is in equilibr..