Give correct solution Database Systems is considering expansioninto a new product line. Assets to supportexpansion will cost $740,000. It is estimatedthat Database can generate $1,910,000 inannual sales, with a 4 percent profit margin.What would net income and return on assets(investment) be for the year?

Step 1: Introduction to the Return on AssetReturn on assets is a financial measure that is used to…

Answered: Database Systems is considering…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

See similar textbooks

Similar questions

Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
Please give me answer
Need help
muka
Ans.
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $ 500,000. It is estimated that Database can generate $ 1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets ( investment) be for the year? (Round your return on assets to 1 decimal place. Omit the "$" and "%" signs in your response.)
Provide true answer
Accounting Problem: Database systems is considering expansion into a new product line. Assets to support expansion will cost $500,000. It is estimated that Database can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets(investment) be for the year?
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $890,000. It is estimated that Database can generate $1,860,000 in annual sales, with an 13 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.) Net Income Return on assets 96
Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.97 million. The product is expected to generate profits of $1.15 million per year for 10 years. The company will have to provide product support expected to cost $95,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. a. What is the NPV of this investment if the cost of capital is 6.1%? Should the firm undertake the project? Repeat the analysis for discount rates of 1.2% and 16.5%, respectively. b. What is the IRR of this investment opportunity? c. What does the IRR rule indicate about this investment?

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Database Systems is considering expansion into a new product line. Assets to support expansion will cost $740,000. It is estimated that Database can generate $1,910,000 in annual sales, with a 4 percent profit margin. What would net income and return on assets (investment) be for the year?