Accounting
posted by Francesca .
Sierra Company is considering a longterm investment project called ZIP. ZIP will require an investment of $121,200. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,180, and annual expenses (excluding depreciation) would increase by $40,180. Sierra uses the straightline method to compute depreciation expense. The company's required rate of return is 11%. Compute the annual rate of return.
Respond to this Question
Similar Questions

Finance ( Need help )
TexMex Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straightline method over its 3year life and would have a zero salvage value, and no new working capital … 
Corporate Finance
1. TexMex Products is considering a new salsa whose data are shown below. The equipment that would be used would be depreciated by the straightline method over its 3year life, would have zero salvage value, and no new working capital … 
Finance
What's the net present value (NPV) of this replacement project? 
Business
What is the net present value (NPV) of this replacement project? 
finance
Wheel Industries is considering a threeyear expansion project. The project requires an initial investment of $1.5 million. The project will use straightline depreciation method. The project has no salvage value. It is estimated that … 
Business Finance
Neville Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $174,777 and have an estimated useful life of 9 years. It will be sold for $69,200 at that time. (Amusement parks … 
Finance
We are considering the introduction of a new product. Currently we are in the 34% tax bracket with a 15% discount rate. This project is expected to last five years and then, because this is somewhat of a fad project, it will be terminated. … 
Accounting
1. A manager is considering the following investment: Initial capital investment $180,000 Estimated useful life 3 years Estimated disposal value in 3 years 0 Estimated annual savings in cash operating costs $80,000 Minimum desired … 
Accounting
Brodigan Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment $450,000 Net annual operating cash inflow $220,000 Tax rate 30% Aftertax discount rate 12% The expected … 
managerical accounts
(ignore income taxes in this problem)the following data pertain to an investment proposal: cost of the investment $30,000 Annual cost saving 9,000 estimated salvage value 4,000 life of the project 5 years discount rate 12% Which is …