Average net income = Total net income / Total years = $180,000 / 5 | $ 36,000 |
Average investment = ( Cost + Residual value ) / 2 = ( $400,000 + $50,000 ) / 2 | $ 225,000 |
Average rate of return = Average net income / Average investment = $36,000 / $225,000 | 16% |
Average Rate of Return Determine the average rate of return for a project that is estimated...
Average Rate of Return Determine the average rate of return for a project that is estimated to yield total income of $571,500 over six years, has a cost of $685,800, and has a $76,200 residual value. Round to the nearest whole number. %
Average Rate of Return Determine the average rate of return for a project that is estimated to yield total income of $177,660 over three years, has a cost of $490,700, and has a $73,300 residual value. Round to the nearest whole number. 3 X % Feedback Check My Work Divide the estimated average annual income by the average investment. Investment cost plus residual value, divided by two, equals average investment. Cash Payback Period A project has estimated annual net cash...
Determine the average rate of return for a project that is estimated to yield total income of $264,180 over three years, has a cost of $953,100, and has a $82,900 residual value. Round to the nearest whole number.
Determine the average rate of return for a project that is estimated to yield total income of $368,640 over four years, has a cost of $668,200, and has a $99,800 residual value. Round to the nearest whole number.
1. Average Rate of Return Determine the average rate of return for a project that is estimated to yield total income of $203,550 over three years, has a cost of $513,300, and has a $76,700 residual value. Round to the nearest whole number. _____%
ice Exercises OBJ.2 Average rate of return PE 10-1A Determine the average rate of return for a project that is estimated to yield total in- come of $170,000 over five years, has a cost of $320,000, and has a $20,000 residual value. EE 10-1 p412 EE 10-1 p412 PE 10.1 B Average rate of return OBJ. 2 Determine the average rate of return for a project that is estimated to yield total income of $36,000 over three years, has a...
A. Determine the average rate of return for a project that is estimated to yield total income of $310,400 over four years, cost $706,000, and has a $70,000 residual value. B. A project has estimated annual net cash flows of $51,800. It is estimated to cost $440,300. Determine the cash payback period. Present the answer to one decimal place. years C. A project has estimated annual net cash flows of $50,100. It is estimated to cost $425,850. Determine the cash...
Q1: What is the accounting rate of return for a project that is estimated to yield total income of $333,000 over three years and costs $865,000? (Round your answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Q2: Citrus Company is considering a project that has estimated annual net cash flows of $21,300 for six years and is estimated to cost $100,000. Citrus’s cost of capital is 8 percent. Accounting Rate of Return Determine the net present...
6. Why would the use of the cash pays natrical re- be considered Il lated to acquiring automated factory equige rmance of uipment, leases from a motion picture production studio be supported over the net present value method? Practice Exercises EE 10-1 p412 PE 10-1A Average rate of return OBJ.2 Determine the average rate of return for a project that is estimated to yield total in come of $170,000 over five years, has a cost of $320,000, and has a...
Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $68,000 $92,000 Useful life 4 years 9 years Estimated residual value Estimated total income over the useful life $7,480 $41,400 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project Z Average Rate of Return-New Product Hana Inc. is considering an investment in new...