What is the average accounting return

Assignment Help Finance Basics
Reference no: EM13272202

A project has an initial cost of $37,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,100, $1,200, $1,700, and $1,800 a year for the next four years, respectively. What is the average accounting return?

Reference no: EM13272202

Questions Cloud

Explain the barometric pressure was 736 torr : An evaluation of R was performed, following the procedure described in this module. The barometric pressure was 736 torr, the temperature was 295k and volume of hydrogen gas collected was 35.6 mL. The calculated value of R was 82.1 mL atm K^-1 mol..
What role do you see the united nations has : What role do you see the United Nations has in international affairs/issues and what role should they have if different from what it is they are currently doing?
Generate a row vector x of length 40 containing the integers : (a) Generate a row vector x of length 40 containing the integers 0, 1, 2, ...39. (b) Generate a row vector y containing 40 values, each of whom is a random real number in the interval [4:5; 7:5]. (c) Produce a new vector v equal to the sum of the two..
Was it ethical to initially start the company showing : Was it ethical to initially start the company showing a very minor profit so future profits would appear to be phenomenal growth?
What is the average accounting return : The projected net income from the project is $1,100, $1,200, $1,700, and $1,800 a year for the next four years, respectively. What is the average accounting return?
Explain the composition in mole fractions of a solution : What is the composition in mole fractions of a solution that has a vapor pressure of 33 at 20
How much energy is exchanged when a positive charge moves : Supposed that the terminals are labeled a,b. V(ab) = -15 V, how much energy is exchanged when a positive charge of a 4 C moves through the device from a to b. Is the energy delivered or taken from the device.
Should the project be pursued : The truck falls into the MACRS five year class life(applicable annual percentages are 20%, 32%, 19%, 12%, 11% and 6%) and the truck will be sold after two years for $40,000.
Explain an evaluation of r was performed : An evaluation of R was performed, following the procedure described in this module. The barometric pressure was 736 torr, the temperature was 295k and volume of hydrogen gas collected was 35.6 mL.

Reviews

Write a Review

Finance Basics Questions & Answers

  Detailed explanation to organizational structure

What aspects of this organizational structure seem to work well and those aspects that seem to be dysfunctional.

  Specialization or research interest

Describe the specialization or research interest you desire to pursue if accepted. What are your personal and professional goals?

  Explain the relationship between risk and return

Explain the relationship between risk and return. What can an investor do to reduce risk?

  Calculate the break-even point resale price

Suppose you have decided to acquire a new car that costs $30,000. You are considering whether to lease it for 3-years or to buy it and finance the purchase with a 3-year instalment loan.

  What is the maximum utilization of days

A nursing home contracts with an HMO for skilled nursing care at $2.00 PMPM. If costs are expected to average $120 per day, what is the maximum utilization of days per 1,000 members that the nursing home can experience before it begins to lose mon..

  Explain the purpose and objective of accounting

You have been asked by the CEO of your firm to give a presentation to students at a local college. You were specifically asked to discuss role of an accountant.

  Find the value of common stock

A security analyst forecasts dividends of Kalpert Enterprises for the next 3 years. Her forecast is D1=$1.50, D2=$1.75, and D3=$2.20. She also forecasts a price in 3 years of $48.50.

  Which one of the following is a drawback of cash dividends

Which one of the following is a drawback of cash dividends?

  What is the times interest earned ratio

Dexter's. has net income of $11,000, interest of $480, cost of goods sold of $31,500, and depreciation of $900. What is the times interest earned ratio if the tax rate is 35 percent?

  What is the companys cost of equity capital

Halestorm Corporation's common stock has a beta of 1.23. Assume the risk-free rate is 4.8 percent and the expected return on the market is 12.3 percent.

  Calculate the enterprise market value

General Mills, Corporation, the large manufacturer of packaged foods, reported the following in its annual report for year ending May 25, 2008;

  Economic order quantity

A large consulting firm orders photocopying paper by the carton. The company pays a $30 delivery charge on each order. The total expense of storing the paper,

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