Palmer Corp

question 28

Multiple Choice

Palmer Corp.is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in net income after tax of $100,000.The equipment will have an initial cost of $400,000 and have a 7-year life.If the salvage value of the equipment is estimated to be $75,000,what is the accounting rate of return?

• A)14.28%
• B)25.00%
• C)42.11%
• D)147.37%

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Definitions:

Structural Functionalism

A sociological theory that sees society as a complex system whose parts work together to promote solidarity and stability.

Social Exchange Theorist

A scholar or researcher who studies how human relationships are formed and sustained based on the principles of mutual exchange of resources, benefits, and costs.

Conflict Theorists

are scholars and sociologists who analyze social life by focusing on the distribution of power and the conflicts that result from differing interests and social inequalities.

Laboratory Experiments

Controlled tests carried out in a lab setting to study behaviors, reactions, or phenomena under replicated conditions.