![babyissy2016](/avatars/47747.jpg)
babyissy2016
20.05.2021 •
Business
Augustus Company is considering investing in new equipment. Based on the following, what is the Average Annual Operating Income (as in the Accounting Rate of Return calculation)?
Estimated Cost of New Equipment $500,000
Useful life in years 5
Estimated Residual Value $50,000
Expected New Cash Inflows over life of asset $700,000
Solved
Show answers
More tips
- C Computers and Internet Why is Yandex s robot Bless.yandex.ru Important?...
- S Science and Technology How to Restore the Diamond Shine to Your Tarnished Silverware...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- L Leisure and Entertainment How to Find a Phone Number by Address: The Ultimate Guide...
- F Food and Cooking Pu-erh Tea: History, Varieties, Benefits, and Risks...
- S Style and Beauty Why is Sugaring Better than Waxing for Hair Removal?...
- C Computers and Internet How to Delete a Page on VKontakte: The Ultimate Guide from Experts...
- F Food and Cooking How to Make Delicious Plov: Secrets and Recipes...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- L Leisure and Entertainment Unlocking the Secrets of Winning the Lottery...
Answers on questions: Business
- B Business Pam invested $4200 in a savings account with a yearly interest rate of 4% for 7 years. how much simple interest did she earn...
- B Business A defendant wants to make sure the judge sees a document that proves his innocence His attorney should add this to the blank Its Exhibit list...
- B Business How would you show this in excel...
- B Biology In humans eye color can be determined by pairs of...
- E English Waldorf education introduces letters and numbers: after age 3 after age 5after age 7after age 2after age 8...
- M Mathematics Gregg has a coin collection album with 275 pages. each coin is displayed on 1/6 of a page. how many coins will fit in the page?...
- E English Beatrice asks benedick to ask for her hand in marriage capture don john kill claudio wait a year before courting her...
- M Mathematics Ihave a final tommorow and i dont get what a trabsitive property is. why is angle 7 and angle 5 a transitive property?...
- H History During the civil war, wanted higher tariffs to protect industry, no slavery in new territories, and westward expansion. wanted lower tariffs to promote agriculture, smaller government,...
- E English Sasha was a best friend of two friends named jazmine, and erica. sasha was the owner of a beauty shop, that erica and jazmine worked at until they took a advantage of her kindness....
Ответ:
$50,000
Explanation:
Estimated Cost of New Equipment = $500,000
Useful life in years = 5
Estimated Residual Value = $50,000
Expected New Cash Inflows over life of asset = $700,000
Annual depreciation expense = (Estimated Cost of New Equipment-Estimated Residual Value)/Useful life in years
= ($500,000 - $50,000) / 5
= $450,000 / 5
= $90,000
Average annual cash flow = Expected New Cash Inflows over life of asset/ Useful life in years
= $700,000/5
= $140,000
Average annual operating income = Average annual cash flow - Annual depreciation expense
= $140,000 - $90,000
= $50,000
Ответ:
omgg tysm <3!
Explanation: