Simple rate of return : It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula: Simple rate of return = Average Accounting Profits Average Investment Project’s simple rate of return of each five years.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

choose best answer general accounting

What is the variable overhead expenditure variance for the period?

Correct Answer

Answer 2

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Answer 6

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Answer 7

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 12.A - Basic Present Value Concepts Annual cash inflows...Ch. 12.A - Basic Present value Concepts Julie has just...Ch. 12.A - Prob. 3E Ch. 12.A - Prob. 4E Ch. 12.A - Basic Present Value Concepts The Atlantic Medical...Ch. 12.A - Prob. 6E Ch. 12 - What is the difference between capital budgeting...Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q

Solution Summary: The author explains that simple rate of return is the rate by which companies estimate how much an organisation can expect to make off of a capital investment each year.

Concept explainers

Videos

Want to see the full answer?

Chapter 12 Solutions