Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. newport corp is considering the purchase of a new

Newport Corp is considering the purchase of a new piece of equipment. The cost savings...

60.1K

Verified Solution

Question

Accounting

Newport Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6 year life. There is no salvage value for the equipment. What is the accounting rate of return? Ignore income taxes.

A. 5.56%

B. 16.67%

C. 22.22%

D. 44.44%

Please show your work on the calculations!

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Use the branch and bound method to find the optimal solution to the following integer programming...

Advance Math
Q

Hi. This is a question for my summer neuroscience class. Q: How many layers are there...

Medical Sciences
Q

A student dissolved 5.05 g of KNO3 in 100.302 g of water. The temperature changed from...

Chemistry
Q

1. Counting the number of people who have been exposed to the Zika virus is an example...

Basic Math
Q

Why do birds secrete uric acid and we secrete urea? Use toxicity and energy expenditure...

Biology
Q

Which of the following is the world s largest body of water that does NOT...

Algebra
Q

Indicate whether the statement is true or false, and justify your answer. Japan's...

Accounting
Q

Business Solutions had the following transactions and events in December 2015....

Accounting
Q

Holden Packaging Corporation began business in 2017 by issuing 82000 shares of $5 par common...

Accounting
Q

Amerfond, Inc. produces the basic fillings used in many popular frozen desserts and treats-vanilla and...

Accounting
Q

2. what should the initial investment of Machine C change to in order for that...

Finance
Q

Last year, you purchased 590 shares of Forever, Inc., stock at a price of $47.20...

Finance