Business, 13.11.2019 03:31 rainbowboi

Swagelok enterprises is a manufacturer of miniature fittings and valves. over a 5-year period, the costs associated with one product line were as follows: first cost of $20,000, and annual costs of $16,000. annual revenue was $29,000 and the used equipment was salvaged for $10,000. what rate of return did the company make on this product?

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Answer from: darlenepitre

The rate of return did the company make on this product is 61.93%

Explanation:

initial cost = 20000

Annual benefit = 29000

Annual cost = 16000

Salvage value = 10000

t = 5yrs

Let rate of return is I, then at rate of return NPV=0

Present value = -20000 + (29000 - 16000)*(P/A, i, 5) + 10000 (P/F, i, 5)

-20000 + 13000*(P/A, i, 5) + 10000 (P/F, i, 5) = 0

13*(P/A, i, 5) + 10* (P/F, i, 5) = 20

We need to use trail and error method to find rate of return

At = 10%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 55.49

At = 15%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 48.55

At = 25%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 38.24

At = 35%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 31.09

At = 45%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 25.94

At = 55%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 22.11

At = 60%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 20.55

At = 62%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 19.98

using interpolation

rate of return = 0.6 + (20.55-20)/(20.55-19.98) * (0.62-0.6)

= 0.6+0.019298

= 0.6193

= 61.93%

Therefore, The rate of return did the company make on this product is 61.93%

Answer from: Quest

i think you have to let the moderators that you want your old account to be activated.

Answer from: Quest

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being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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