What is the difference between a Pyramid Scheme and a Multi-Level Marketing (MLM) company?

a
A pyamid scheme is legal whereas a MLM company is illegal
b
A pyramid scheme does not sell a product whereas a MLM company does
c
A pyramid scheme sells an actual product whereas a MLM company does not
d
There is no difference between a pyramid scheme and a MLM

Answers

Answer 1
C is correct! I took the test

Related Questions

which type of software license allows a predetermined number of people to use the account at the same time?

Answers

You can establish a limit on how many applications can be utilized concurrently using concurrent licenses. This permits each user to access the resource, but only so many times as the limit has been reached.

What distinguishes a concurrent license from a floating license?

With named-user licenses, the designated user accounts have unrestricted access to the license. The floating-user license type is a license that permits infinite users, but the number of floating seats that can be used concurrently is restricted.

Why are there 100 users active at once?

The term "concurrent HTTP" describes HTTP queries sent simultaneously. We have 100 concurrent HTTP requests, for instance, if there are 10,000 users with active sessions and 100 of them are simultaneously asking to view the same resource over HTTP.

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an important aspect of any type of bankruptcy proceeding is the protection that the debtor has after filing for bankruptcy. the legal term used to describe this protection is the:

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Liquidation or the most frequent type of bankruptcy for individuals is straight bankruptcy. Your assets—anything you own with monetary value—are liquidated (sold) under the supervision of a court-appointed trustee in order to satisfy your debts.

How can bankruptcy be avoided?

preserving a positive cash flow, choosing a change in management, basing decisions on a business strategy, maintaining correct financial records, and maintaining excellent relations with creditors.

Which two primary categories of bankruptcy are there?

There are two distinct categories of bankruptcy cases out of these five types: 1) Straight/Liquidation, 2) Reorganization—the latter requires the designation of classes of claims and interests in the reorganization plan.

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A common difficulty that traders face when exporting goods or services to other countries is that?

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A common difficulty that traders face when exporting goods or services to other countries is that different legal norms.

The traders are those people who selling and buying their goods and services of financial assets in any financial markets or any institution.

There are three types of exporting: indirect exporting, direct exporting and cooperative exporting.

The legal norms is a connecting rule or norm in which organizations of sovereign power promulgate in order to regulate or run social relations. This difficulty faced by every traders when when exporting goods or services to other countries.

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For​ decades, sony relied on its​ ________ in miniaturizing electronic components to assure global leadership.

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For​ decades, Sony has relied on its​ core competency in miniaturizing electronic components to assure global leadership.

For any employer, its center competency refers back to the abilties, expertise, talents and assets that constitute its "defining strength."

A company's center competency is awesome, and therefore no longer without problems replicated through other businesses, whether or not they're existing competition or new entrants into its market.

Core skills lead to operational excellence which results in advanced products, happier clients, and/or more profitability. When a business enterprise is able to doing a part of the sale procedure surprisingly well, it profits a nice reputation for its center competence.

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which financial statement summarizes the changes in the balance of each stockholders' equity account?

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The balance sheet gives a quick picture of the property, expenditures, and stockholders' equity.

The earnings and costs incurred by a corporation during a specific time period are the main subjects of the income statement.

What appears on the account of modifications in owner's equity?

The financial statement of a company that tracks changes in owners' equity over the course of an accounting period is called a report of adjustment in equity, often known as a statement of retained earnings. It includes the following topics: Total revenue or loss. payout of dividends.

Which of the following best describes how owner's equity changed over the course of the review period?

The report of owner's equity, also referred to as the report of retained profits, displays the difference in cash flows among the start and conclusion of a period.

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Hubert co. Has $1 million of debt, $2. 44 million of preferred stock, and $1. 51 million of common equity. What would be its weight on debt?

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Hubert co. has $1 million in debt, $2. 44 million in preferred stock, and $1. 51 million in ordinary equity make up Hubert Co. 50 million shares of the company's outstanding stock are presently trading at Option. Issue additional debt of $1 billion and repurchase shares.

The weighted average of the company's after-tax debt, preferred stock, and equity costs. Leverage on the financial system. Invest in securities with fixed financial costs to finance a portion of the company's assets. Preferred stock debt. Leverage on the financial system. Invest in securities with fixed financial costs to finance a portion of the company's assets.

The price a corporation pays for preferred stock is essentially the cost to that company. Corporations may issue common shares and debt. Industrial company Schwartz Industry has 100 million outstanding shares.

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madison, the cpa, is faster than mason, the house painter, at both accounting services and painting. this means that

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As long as Madison is comparatively more effective at accounting services, she should trade her accounting services for Mason's painting skills.

What is a trading partner example?A region or nation that another region or nation purchases from or sells to:Vietnam's main trading partner is the United States.A different business with whom you exchange papers is known as an EDI trading partner.A wide network of trading partners, also referred to as "Trading Communities," will be present for the majority of OEMs.A trade partner is an individual who participates in a supply chain transaction, such as a supplier (seller) or a retailer (buyer).Despite the fact that not all suppliers are manufacturers, manufacturers can also serve as suppliers.The distinction between "Suppliers" and "Retailers" is based on their respective roles.

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which of the following statements is not correct concerning the elements of the cash conversion cycle time? multiple choice the cash conversion cycle is based on accounts receivable, accounts payable, and inventory. lean manufacturers try to reduce the total cash conversion cycle time. the higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash. effectively managing working capital is important for businesses to survive and profit. the cash conversion cycle measures the average time it takes to convert cash outflows into cash inflows.

Answers

The correct statement is " the higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash".

The cash conversion cycle (CCC) is one statistic among many that managers use to evaluate how well they utilise working capital. Working capital refers to the funds utilized for daily activities. This metric gauges how quickly a business turns money used for operations into cash.

In order to build inventory, sell things, and collect money from customers, the cash conversion cycle uses average timings. In general, the shorter this period, the better for the business.

Accounts receivable (AR), accounts payable (AP), and outstanding inventory and sales are combined into the cash conversion cycle (AP). Unsold inventory is classified as outstanding inventory, whereas accounts receivable and accounts payable are terms for accounts that the business must make payments on.

You must gather data from the company's financial accounts in order to calculate cash conversion cycle:

Over time, the average inventoryCost of sales or cost of products soldBalance of receivablesannual incomeAccounts Payable is closed

You can use this data to determine the number of days that your inventory, sales, and payables are still unpaid.

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suppose that your ai system is generating biased results -- that it is unfairly discriminating against some people. which of our ai trends is best able to handle that problem?

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A Data  bias is an problem with synthetic intelligence (AI) structures for the reason that those structures use previous facts to learn.

The required details for Data bias in given paragraph

Statistical bias is a scientific tendency which reasons variations among consequences and facts. The bias exists in numbers of the method of records analysis, consisting of the supply of the records, the estimator chosen, and the methods the records became analyzed. Bias can also additionally have a severe effect on consequences, for example, to research people's shopping for behavior. If the pattern length isn't huge enough, the consequences might not be consultant of the shopping for behavior of all of the people. That is, there can be discrepancies among the survey consequences and the real consequences. Therefore, know-how the supply of statistical bias can assist to evaluate whether or not the determined consequences are near the actual consequences. Bias may be differentiated from different errors along with accuracy (tool failure/inadequacy), loss of records, or errors in transcription (typos). Bias means that the records choice can also additionally were skewed through the gathering criteria.

Bias does now no longer forestall the lifestyles of another errors. One can also additionally have a poorly designed pattern, an faulty size device, and typos in recording records simultaneously.

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contractionary monetary policy will likely be accompanied by a(n) in interest rates and that change in interest rates will cause a(n) in the value of the dollar.

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A type of monetary policy known as contractionary monetary policy aims to slow down the rate of monetary expansion in order to combat inflation.

The main sign of an overheated economy, which can be brought on by prolonged periods of economic development, is a spike in inflation.

The Federal Reserve's three primary methods for reducing the money supply are raising interest rates, raising the minimum reserves required of banks, and selling government securities.

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suppose the production of electricity generates pollution. in this case, the optimal level of electricity is produced when the marginal social benefit from electricity production equals the a. marginal social cost of electricity production. b. marginal cost of labor used in electricity production. c. marginal private cost of electricity production. d. marginal external cost of electricity production.

Answers

The marginal social benefit of electricity production matches the marginal social cost of electricity production, the ideal level of power is created in this situation.

How is electricity made?

A turbine generator set transforms mechanical energy into electrical energy to produce electricity. Natural gas, coal, , biomass, petroleum, geothermal, and solar thermal all use the heat they generate to turn water into steam, which turns the turbine's blades.

How is electricity generated and how does it move?

Large rotating turbines in power plants use either water, wind, coal, or natural gas to generate electricity (hydropower). Transformers boost the voltage as the electrical current travels through them, allowing for the transmission of electricity across great distances.

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anelle hires brandi to purchase merchandise for her jewelry store because brandi enjoys making and selling her own jewelry. in addition, she has worked in other jewelry stores, can identify numerous gemstones, and has a good sense of their value. brandi's knowledge is an example of a . multiple choice question.

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Brandi is hired by Janelle to buy goods for because she has worked in other jewelry stores, can identify numerous gemstones Brandi adores creating jewellery, selling her own items as well. Additionally, she has experience working in various jewellery. The correct answer is A. Core competency.

Businesses and can name possesses several gemstones and a keen sense of their worth. Brandi's expertise is an illustration of a core proficiency.The qualities and abilities a The competitive advantages of the company are its core abilities contemporary

A business must have a management in on, enhance, and profit from, its strengths to outperform the opposition. Core. The defining characteristics are competence. that distinguish a person or business the opposition To evaluate a Firm managers now are different from those in the 1980s, Initially, the idea of core competencies was put Core competency.

Complete question:

anelle hires brandi to purchase merchandise for her jewelry store because brandi enjoys making and selling her own jewelry. in addition, she has worked in other jewelry stores, can identify numerous gemstones, and has a good sense of their value. brandi's knowledge is an example of a . multiple choice question.

A. Core competency.

B. "Brandy acts well because she's hired a good acting coach."

C. "Brandy acts well because she chose a great script to perform."

D. "Brandy acts well because she has other good actors with her."

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discuss the various types of internet investment scams and auction frauds causes and solutions by giving some examples?

Answers

Promissory Note Fraud, Investing in Real Estate  Cryptocurrency Fraud

What is Currency?In the broadest sense, a currency is any type of money that is used as a means of trade, particularly coins and banknotes. Any form of legal tender that the government issues and accepts as payment for goods or services, taxes, or debt repayment is referred to as money. Despite the fact that money is an intangible object that cannot be seen, touched, or even smelled, its significance in terms of numbers is undeniable and crucial.A currency is the standardisation of money, including banknotes and coins, that is used or in circulation as a means of exchange. A currency is a system of money that is widely used in a particular area over time, according to a more broad definition.

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Scammers use the promise of quick and significant returns to lure naive victims into investing their money in fictitious or fraudulent enterprises.

Discuss the many sorts of online investment frauds?Scammers use the promise of quick and significant returns to lure naive victims into investing their money in fictitious or fraudulent enterprises. Fraudulent claims about the value and veracity of the things up for auction are involved. Sellers frequently make exaggerated claims regarding the quality and price of the commodities, or they ship fake goods in place of the actual thing.Causes: Criminals skilled at taking advantage of online systems' vulnerabilities frequently carry out investment scams and auction frauds over the internet.Solutions: To avoid falling victim to these frauds, online consumers should exercise caution and be wary of promises of speedy or guaranteed profits.

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because of various texas and us laws, interest groups with lower amount of financial resources possess the same amount of political influence as larger, wealthier interests.
a. true
b. false

Answers

Due to different Texas and US regulations, interest organizations with less money have a same level of political influence as those with more.

What does the term "political issue" mean?

A political issue is one that "deals as far as how power is allocated and how it function through society —, and how individuals think about and engage in their communities or the larger globe on subjects that impact their lives," according to the Worldwide Politics course guide.

Politics as a human right?

A class of rights known as civil liberties ensures that people can participate in the the civil and political people's lives of their society and state without fear of persecution or prejudice, or that their liberty is safeguarded from infringement by authorities, social groups, and private citizens.

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in an interview, you are asked to explain how gamification contributes to enterprise security. how should you reply?

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In an interview, explaining about gamification contributes to enterprise security that instructional gaming can train employees on the details of different security risks while keeping them engaged.

An interview is a private discussion between an interviewer and an interviewee. Interviewees often reply by giving information to the questions the interviewer asks them. It is possible to utilize or distribute the information right away or at a later time to different audiences.

Employers can use the interview to ascertain whether a candidate has the necessary qualifications for the position based on their personality, experience, and abilities. It also enables employers to determine if a candidate will likely fit into the business culture.

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an emerging area of research and practice is employing data science technologies for studying organizational dynamics, personnel behavior, and redesigning the organization to better achieve its goals. indeed, such analytics applications are known as:

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An emerging area of research and practice is employing data science technologies for studying organizational dynamics, and personnel behavior, and redesigning the organization to better achieve its goals. indeed, such analytics applications are known as: people analytics.

Facts technological know-how generation optimizes a business enterprise's commercial enterprise method by using using the agency's statistics to find insights. Leaders use these statistics to make actionable choices to assist their corporations grow.

Facts technological know-how is not best an artificial concept to unify facts, information analysis and their related strategies but also contains its results. It consists of 3 phases, design for information, collection of facts, and evaluation on facts.

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which of the following would be considered a fiscal policy? choose one: a. the government passing a law that requires that all homes have a fire extinguisher in the kitchen b. spending by the government on medical care for children before they start school c. the government spending more on libraries with the goal of improving literacy d. the government decreasing income taxes with the belief that consumers will spend more money and stimulate the economy e. a tax on hotel rooms that would pay for a tourism marketing campaign

Answers

An option that would be considered to be fiscal policy would be d. the government decreasing income taxes with the belief that consumers will spend more money and stimulate the economy.

What is fiscal policy ?

The use of taxation and expenditure by the government to affect the economy is known as fiscal policy. Fiscal policy is often used by governments to encourage robust, long-term growth and to lower poverty.

During the recent global economic crisis, when governments intervened to stabilize financial institutions, spur growth, and lessen the impact of the crisis on vulnerable individuals, the function and goals of fiscal policy rose to prominence.

The government may reduce tax rates or boost spending during a recession to boost demand and the economy. On the other hand, it can increase rates or reduce spending to slow down the economy in order to battle inflation.

This is why an example of fiscal policy is when a government decreases income taxes with the hope that because consumers have more money to spend, they will do so and stimulate the economy as a result.

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we have learned that the transition from poverty is a challenging one, because it is not simply an economic issue, but a cultural one as well. what would be a result if the government slowly phases out its support payments through the antipoverty program?

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The antipoverty program would cost more money.

Children are negative due to the fact they reside in households and/or communities which are bad. Consequently, a primary purpose of anti-poverty rules is to break the link between bad assets of mother and father or caregivers and detrimental infant consequences.

Schemes like Pradhan Mantri Awas Yojana and Housing for All by using 2022 have been evolved to offer housing to the rural and urban poor. The modern-day government schemes like begin-Up India and arise India focuses on empowering human beings to earn their livelihood.

Poverty discount may be attained through stimulating monetary boom to growth incomes and make bigger employment possibilities for the terrible; challenge economic and institutional reforms to enhance performance and enhance the utilization of resources.

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Deep Earth Extraction, Inc., operates a facility near Estuary Bay. Discharging waste from the facility into the bay can result in
a.
?penalties and damages.
b.
?penalties only.
c.
?damages only.
d.
?none of the choices.

Answers

Discharging waste from the facility into the bay can result in penalties and damages.

What is meant by Discharging?

In general term, discharging means to relieve of a charge, load, or burden.

Here we have given that Deep Earth Extraction, Inc., operates a facility near Estuary Bay.

And we need to find the Discharging waste from the facility into the bay can result in what type of causes.

Here we know that the the Estuary Bay was near the Deep Earth Extraction, Inc.

When the discharges the waste then it will cause the pollution around it surrounding and thus make the corporation to pay the penalties.

Therefore, option (a) is correct.

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the digby company will sell 100 units (x1000) of capacity from their dino product line. each unit of capacity is worth $6 plus $4 per automation rating. the digby company will sell the capacity for 35% off. how much do they receive when the capacity is sold?

Answers

The Digby company will sell the capacity for 35% off. They receive when the capacity is sold: d. $2,210,000

Solution:

automatic rating = 7

cost per unit = 6 + 4*7 = 34

worth of the capacity = 100000*34

                                  = 3400000

amount received = 3400000*(1 - 35%)

                           = $2,210,000

Therefore, The amount they receive when the capacity is sold is $2,210,000.

A company is a prison entity shaped by using a group of individuals to interact in and perform an enterprise—business or commercial—organization. An enterprise can be organized in diverse approaches for tax and financial liability purposes relying on the corporate law of its jurisdiction.

There are 3 commonplace kinds of corporations—sole proprietorship, partnership, and organization—and each comes with its very own set of benefits and downsides. In easy terms, the reason for an enterprise is to have a significant imagination and prescient after which to be worthwhile in accomplishing it. And we should qualify “profitable”: profitability means long-time period sustainable returns, and each word in that phrase is vital.

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which term refers to a country that is neither the parent country nor the host country of a company? multiple choice first country facilitating country governing country third country guest country

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third country term refers to a country that is neither the parent country nor the host country of a company.

local residents. These workers, often known as citizens of the host nation, are hired for positions within their home nation. For instance, a local national working for Coca-U.K. Cola's subsidiary is a citizen of the United Kingdom.

Expatriates. Historically, American businesses have characterized expatriates as workers who are invited to work temporarily outside of their home nations with the intention of eventually returning there. Those living abroad who are citizens of the nation where the firm is based are referred to as headquarters expatriates. A parent-country national is another term for an expat.

nationals of third countries (TCNs). Both the home country and the host country do not have these employees.

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The country that has an increase in net capital outflow in this scenario is the U.K. but not the U.S. This is because the U.S. company is using its existing U.K. pounds to purchase bonds issued by a company in the U.K.



When a country experiences net capital outflow, it means that more money is leaving the country than entering it. In this case, the U.S. company is using its U.K. pounds, which it already owned, to invest in the U.K. This results in a transfer of funds from the U.S. to the U.K., leading to an increase in net capital outflow for the U.K.

On the other hand, the U.S. does not experience an increase in net capital outflow because the U.S. company is using its own currency (U.K. pounds) for the investment. Therefore, the correct answer is option A: the U.K. but not the U.S.

To summarize, when a U.S. company uses U.K. pounds it already owned to purchase bonds issued by a company in the U.K., the U.K. experiences an increase in net capital outflow, while the U.S. does not.

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two buyers call you. both want to view homes this coming weekend. one is relocating from out of town, the other has six months left on an apartment lease. which buyer should be your priority for the weekend?

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Corporate buyers can be individuals, groups of individuals, institutional investors, companies in the same or related industries, and even competitors. They each have different characteristics, desires, processes, and funding options.

Buyers and sellers. According to section 2(1) of the Act, a buyer is a person who purchases or agrees to purchase goods. Since a sale is a two-party contract, the buyer is one party to the contract. The law defines a seller in section 2(13). A seller is a person who sells or agrees to sell goods.

Buyers are responsible for purchasing merchandise for the business they use or sell in their business. This position requires extensive research and the ability to negotiate contracts with suppliers, manage inventory, evaluate quality buyers his persona, and detail the motivations for each to purchase a product or service. For example, age, location, job title, goals, challenges, etc. Buyer personas are key to ongoing marketing success.

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during a presentation, promptly complying with requests raised by audience members

Answers

During a demonstration, promptly responding to audience members' requests creates your reputation as responsive.

What defines an audience?

An audience is a collection of people who attend a performance or confront a piece of art, literary works (in that they are referred to as "readers"), theater, music (in they are referred to as "hearers"), games consoles (in that they are referred to as "players"), or scholars in any medium.

What is an instance of an audience?

An audience is a crowd of individuals who attend an event. Those who attend an e-sports incident to witness others play a game, for example, are part of a viewer. The image depicts thousands of people crammed into a sphere to witness an e-sports event.

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True or false. Jeff, Kirk, and Rina are partners in a law firm. The partnership is dissolved if Rina withdraws from the partnership and Jeff and Kirk continue to operate the business.

Answers

In a legal firm, Jeff, Kirk, and Reena are partners. If Reena leaves the partnership and Jeff and Kirk continue to run the company, the partnership is dissolved. This assertion is true.

If one of the partners in a general partnership decides to leave, the partnership is dissolved. According to the conditions of its governing agreement, the partnership may be immediately dissolved if one of the partners retires, passes away, or declares bankruptcy.

Alternately, it's possible that the partnership's goals have been achieved and the parties' formal connection is no longer required. The regulations that apply to the dissolution of the partnership and division of the assets are laid forth in a partnership agreement, but these are independent issues.

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the purchase of goods and services, the sale of goods and services to customers, and costs to operate the business are all reported on the statement of cash flows under____activities.

Answers

Money used to cover interest on long-term debts. This is a for-profit venture.

What do you think of as interest?

Interest is the cost of borrowing money or the cost of lending money. Interest is frequently calculated as an annual percentage of the amount borrowed. The interest rate on the loan is represented by this percentage.

Among banks, one has the highest interest rates:

The rates for DCB Bank FDs range from 3.75-7.85% p.a. for the general public and from 4.25-8.35% p.a. for senior citizens on terms of 7 days to 10 years. For tenures of five years, DCB Bank Tax Saving FDs offer interest rates of 7.60% annually for the general public and 8.10% annually for senior citizen depositors.

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Which types of credit involve paying different amounts each month, depending on your activity?

Answers

Open credit is the type that involves paying different amounts each month, depending on your activity.

With open credit, monthly payments are flexible and the entire debt is due at the end of each billing cycle. An excellent example of open credit is your monthly power bill, where the amount payable is determined by how much electricity you used that month.

An open credit is a deal in which one party (the lender) and the other (the borrower) agree that the latter may repeatedly access credit up to a predetermined maximum amount. Due to the fact that the account is revolving, once the borrower begins making payments to it, the funds become once more accessible for withdrawal.

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what is the name of the university of chicago economist who helped to develop the intellectual position of libertarian economics?

Answers

Milton Friedman was the name of the university of Chicago economist who helped to develop the intellectual position of libertarian economics. The Libertarian believe that  people will be both freer and more prosperous if government intervention in people's economic choices is minimized.

What is Milton Friedman's Doctrine?

The Milton Friedman doctrine, often known as the shareholder theory, is a normative theory of business ethics that contends that a company's social responsibility is to enhance its profits.

According to this doctrine , the company's shareholders are the only group to which it has social responsibility and who drive its economic engine.

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During a recent team meeting, Bradley tells his upper-level management that he would like to focus on and improve the culture, leadership, and code of conduct within the business. What is Bradley MOST likely trying to develop at his company?
a. Lifelong friendships across departments
b. Ethics across the entire business
c. Better stock options for employees
d. Financial stability

Answers

Answer:Ethics across the entire business

Explanation:

jus took the quiz, I got you soldiers good luck.

Bradley is probably working to promote ethics throughout his company's entire workforce. As a result, option (B) is the best one.

What is Ethics?

The study of what is ethically good and bad, as well as right and wrong, is known as ethics or moral philosophy. The phrase is often used to refer to any idea or system of moral standards or values.

Such issues are covered by ethics on all fronts. The fundamental questions of practical decision-making are its subject, and its main concerns are the nature of ultimate value and the criteria by which human actions can be adjudged to be right or bad.

Morality and ethics have a lot in common. Where earlier it would have been more correct to speak of moral judgments or moral principles, the terms "ethical judgments" or "ethical principles" are now frequently used.

Hence, option (B) is accurate.

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a company has an entire department of people who do not work well iwth people who are different. what should the company do to solve this problem

Answers

The company  must do to resolve this problem: Train humans within side the branch to get rid of place of work discrimination.

The required details for work discrimination in given paragraph

Discrimination within side the place of work occurs while someone or a set of humans is handled unfairly or unequally due to unique characteristics. These included characteristics encompass race, ethnicity, gender identity, age, disability, sexual orientation, non secular beliefs, or countrywide origin. Discrimination within side the place of work can take place among coworkers, with task applicants, or among personnel and their employers. Whether on cause or with the aid of using accident, discrimination, irrespective of intention, is illegal. Discrimination takes place while you are handled in a different way at paintings due to the fact you belong to a included class. In different words, while you've been handled unfairly due to who you're or how you’re perceived, you've got been discriminated against. Harassment, on the opposite hand, is ugly and undesirable behavior.

This can be some thing that become stated or written, or it may be bodily contact. The culprit or culprit(s) are planned and continual of their conduct, which creates a opposed environment.

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The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $120,000. The machine would replace an old piece of equipment that costs $30,000 per year to operate. The new machine would cost $12,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $40,000. The new machine would have a useful life of 10 years with no salvage value.
Required:
1. What is the annual depreciation expense associated with the new bottling machine?
2. What is the annual incremental net operating income provided by the new bottling machine?
3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return?
4. What is the simple rate of return on the new bottling machine?

Answers

a. The annual depreciation expense associated with the new bottling machine is $12000.

b. The annual incremental net operating income provided by the new bottling machine is $6000.

c. The amount of the initial investment associated with this project that should be used for calculating the simple rate of return is $8000

d. The simple rate of return on the new bottling machine is 7.5%

How to calculate the depreciation?

A depreciation is a term which refers to the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year .

a. Annual depreciation expense:

= 120000/10

= $12000

b. Operating cost of old machine 30000

Less operating cost of new machine 12000

Less annual depreciation on the new machine 12000

Annual incremental net operating income = 6000

c. Cost of the new machine 120000

Less: Scrap value of old machine 40000

Initial investment 80000

d. Annual incremental net operating income 6000

Divide by Initial investment 80000

Simple rate of return 7.5%

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