Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 14-6(algo) simple rate of return method [

Exercise 14-6(Algo) Simple Rate of Return Method [LO14-6] Ballard MicroBrew is considering...

90.2K

Verified Solution

Question

Accounting

Exercise 14-6(Algo) Simple Rate of Return Method [LO14-6]
Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machine would replace an old piece of equipment that costs $14,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $21,000. The new machine would have a useful life of 10 years with no salvage value.
Required:
What is the annual depreciation expense associated with the new bottling machine?
What is the annual incremental net operating income provided by the new bottling machine?
What is the initial investment used for calculating the machines simple rate of return?
What is the simple rate of return on the new bottling machine?
Note: Round your answer to 1 decimal place i.e.0.123 should be considered as 12.3%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Fluid Mechanics Friction Problem: Write one MATLAB m-file that solves the Type I and II problems...

Mechanical Engineering
Q

Find the values of x y and z X 20 N A 20 X

Geometry
Q

Consider the function f(x) = 2 - 5x on the interval [ - 3, 7].The...

Basic Math
Q

Identify whether the statement describes inferential statistics or descriptive statistics From past figures it is...

Statistics
Q

Suppose lim f x 8 Find the following Type DNE if the limit does not...

Calculus
Q

2 a For f x 3x 5 Calculate and simplify the difference quotient f x...

Algebra
Q

Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs...

Accounting
Q

Stahl Inc. produces three separate products from a common process costing $100,100. Each of the...

Accounting
Q

Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in...

Accounting
Q

For the calendar year 2019, Palmer Inc. had the following items that affected the accounts...

Accounting
Q

Select the best description for this journal entry. Customer paid on account within the discount...

Accounting
Q

National Bank quotes the following for the British pound and the New Zealand dollar: ...

Finance