The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:   3D Printer Truck   Amount of investment $40,000  $50,000  Useful life 7 years  10 years  Estimated residual value $  3,000  $  6,000  Estimated total income over the useful life $24,080  $36,400

Q: 1a. Compute the average rate of return for each investment. If required, round your answer to one…

A: 1. Average rate of return  ARR = (Average annual profit / Initial investment) x 100. 2. Average…

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Q: Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two…

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Q: Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two…

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A: Compute average income.

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A: Accounting rate of return is computed as = Annual net income / Initial investment

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Q: Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two…

A: Solution:- Calculation of the average rate of return for each proposal as follows under:-

Q: Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two…

A:

Q: Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two…

A: Average rate of return is calculated by dividing the average net income per year with the average…

Q: Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two…

A: The question is related to Expected Average rate of return. The expected average rate of return is…

Q: Analyze Capital Projects and Provide Recommendations Randolph Inc. is considering the following…

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A: Information Provided: Discount rate = 12% Investment = $75,000

Q: The following data are accumulated by Watershed Inc. in evaluating two competing capital investment…

A: The Average Rate of Return, or ARR, is a metric that gauges the profitability of investments using…

Q: Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two…

A: Average rate of return = Average Annual Net Income/ Average Investment in the Asset   Average Annual…

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Q: Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two…

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Q: None

A: To calculate the expected average rate of return (ARR) for each project, we use the formula: ARR =…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.