Mountain Frost is considering a new project with an initial…

Mountain Frost is considering a new project with an initial cost of $247,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $24,300,$21,300, $27,400, and $18,700, respectively. What is the average accounting return?

Our firm is investing in its production capacity. The expans…

Our firm is investing in its production capacity. The expansion will require a $760,000 investment in new property, plant, and equipment. The expansion will increase sales, which will necessitate an investment of $20,000 and $45,000 in new inventory and accounts receivable, respectively. Expanded sales will require more materials from our suppliers, which will increase our accounts payable by $40,000. What is the investment’s initial cost?