What is the accounting rate of return for project c

Assignment Help Accounting Basics
Reference no: EM131787106

A company is evaluating three possible investments. Each uses straight-line method of depreciation. Following information is provided by the company.

Project A Project B Project C
Investment 200,000 $50,000 $200,000
Salvage value 0 5,000 50,000
Net cash flows:
Year 1 50,000 25,000 80,000
Year 2 50,000 16,000 50,000
Year 3 50,000 12,000 60,000
Year 4 50,000 9,000 20,000
Year 5 50,000 0 0

What is the accounting rate of return for Project C?

Reference no: EM131787106

Questions Cloud

Prepare separate entries for each transaction : On June 19, Meredith pays Leinert Company in full, less the purchase discount. Prepare separate entries for each transaction on the books of Meredith Company
In human-made system-categorized as a system : In human-made system, the following is categorized as a system:
By how much would the change the industry hhi : There is an industry with 86 firms. One has 30% market share, and the remaining 70% of the market share is split equally between the other 85 firms.
Analysis of boeing aerospace company strategy : Description of the chosen industry: main participants, trends, forces affecting the industry.
What is the accounting rate of return for project c : What is the accounting rate of return for Project C, A company is evaluating three possible investments
Global perspective in inventorying its products or services : Describe the challenges faced by the company from a global perspective in inventorying its products or services.
What is farr company accounts receivable balance at december : Gross margin on sales $42,000. What is Farr Company's accounts receivable balance at December 31, 2010
Why is alignment important : Why is alignment important? How can the project manager ensure alignment, and what can go wrong if alignment is not established?
What is the stock risk premium : Based on the CAPM, the required rate of return on a stock is 12%, the stock is 20 percent more risky than a well-diversified market por olio.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Stockholders equity accounts problem

However, a building (with a nine year remaining life) in Brey's accounting records was undervalued by 18,000. Pitino assigned the rest of the excess fair value over book value to Brey's patended technology (Six year remaining life).

  Prepare the appropriate entries for anything grows

Prepare the appropriate entries for Anything Grows and Mid-South on September 29, 2013, assuming the bargain purchase option was exercised on that date.

  Research state governmental financial accounting issues

You recently landed your dream job working for the state as an accountant. You are given the task to research several state and local governmental financial accounting issues.

  The responsibility for harmonizing auditing standards

The responsibility for harmonizing auditing standards across countries rest with IFAC Comment on some of the problems faced by IFAC in achieving the above goal.

  How can location analysis be used in a marketing

How can location analysis be used in a marketing research MIS?

  The admission of new partner under bonus method

If Sergio invests $210,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first a..

  Prepare a summary table that reports the indirect expenses

Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. Prepare a summary table that reports the indirect expenses

  Instructions a compute the materials price and quantity

the standard cost of item 285 manufactured by lemon company includes 3 pounds of direct materials at 6.00 per pound.

  Decorations unique accept the special order made

Should Holiday Decorations Unique accept the special order made by the college? The company has enough excess capacity to make this order

  Why might a corporation want to avoid corporate distribution

Why might a corporation want to avoid corporate distribution? What is the effect of the following on unadjusted AMTI in arriving at ACE? Which of the following credits may be used to offset the AMT?

  Should first delivery service record the interest payment

Deana Moran is the owner of First Delivery Service. Recently, Deana paid interest of $3,600 on a personal loan of $60,000 that she used to begin the business. Should First Delivery Service record the interest payment? Explain.

  The effect on the balance sheet

What would be the effect on the balance sheet if adjustments (b) and (e) were omitted at the end of the year? Enter all amounts as positive numbers.

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