What is accounting rate of return on original investment

Assignment Help Accounting Basics
Reference no: EM132594390

Question - Orow Print Shop is considering the purchase of a used printing press costing $19,200. The printing press would generate a net cash inflow of $8,000 per year for three years. At the end of three years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation with no mid-year convention. What is the accounting rate of return on the original investment in the press to the nearest percent, assuming no taxes are paid?

Reference no: EM132594390

Questions Cloud

Prepare the journal entry to record the exchange : In 2015, Malawi Inc. exchanged equipment for two delivery trucks. Prepare the journal entry to record the exchange
Human resource practices and effective organizational change : There is a strong linkage between standard human resource practices and effective organizational change.
Does media communications affect agenda setting : Does media communications affect agenda setting and public opinion? If so, do you believe this is appropriate?
About press or information release from your state : Explain the speed or timing of the release and dissemination of the press release. Explain the role of the media in the dissemination of the press release.
What is accounting rate of return on original investment : What is the accounting rate of return on the original investment in the press to the nearest percent, assuming no taxes are paid
Estimate the company weighted average cost of capital : (a) Estimate the company's weighted average cost of capital. (b) What is the appropriate discount rate for an expansion of the company's present business?
Make the portfolio gamma neutral : A portfolio of derivatives on a stock has a delta of 2400 and a gamma of -10. An option on the stock with a delta
Businesses that are expanding internationally : A regional bank has decided to open an office overseas for serving those businesses that are expanding internationally
What is the simple rate of return on the initial investment : These cash flows from operations occur uniformly throughout the year. What is the simple rate of return on the initial investment

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.

  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!

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