Accounting rate of return = Annual net income / Initial investment = $3,600 / $150,000 = 2.40%
Falcon Crest Aces (FCA), Inc., s considering the purchase of a small plane to use in...
Required information (The following information applies to the questions displayed below) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial Investment Useful life Salvage value Annual net income generated FCA's cost of capital 5.400 Assume straight line depreciation method is used. Required: Help FCA evaluate this project by calculating each of the following: 1. Accounting rate of return....
Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: $ 310,000 10 years Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital 25,000 6,800 7% Assume straight line depreciation method is used. 1. Accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return 2. Payback period. (Round your answer...
Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: $ 240,99 Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital s 25.09 5.400 5,400 Assume straight line depreciation method is used. 2. Help FCA evaluate this project by calculating each of the following:...
alcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment $ 280,000 Useful life $ 10 years Salvage value 25,000 Annual net income generated $ 6,200 FCA's cost of capital 8 % 1. Accounting rate of return. (Round your answer to 2 decimal places.) 2. Payback period. (Round your answer to 2 decimal places.) (Find how many years)...
Required information (The following information applies to the questions displayed below) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital $ 240,000 10 years 25,000 Assume straight line depreciation method is used. 4. Help FCA evaluate this project by calculating each of the following:...
Required information [The following information applies to the questions displayed below) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing walking demonstrations and aerial tour business. Various information about the proposed investment follows: $ 240,00 1 year Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital $ 25,00 5,400 Assume straight line depreciation method is used. 3. Help FCA evaluate this project by calculating each of...
Required information (The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA'S Cost of capital $ 220,000 $ 10 years 25,000 $ 5,000 7% Assume straight line depreciation method is used. 2. Help FCA evaluate this project by calculating each...
The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Varlous Information about the proposed Investment follows: $ $ Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital 190,000 10 years 20,000 4.400 $ Assume straight line depreciation method is used. Required: Help FCA evaluate this project by calculating each of the following:...
1. Account Rate of return % 2. Payback period in years 3.Net Present Value 4. Net Present Value assuming the cost of capital is 6 percent Required information [The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA's cost of...
Linda’s Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Intital Investment 780,000 Useful Life 10 Years Salvage Value 100,000 Annual Net Income Generated 64,740 LLT'S Cost of capital 15% Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period. 3. Net present value. 4. Without making any calculations, determine whether the IRR is...