Tilemaster Industries Is Considering the Purchase of a $100,000 Machine

question 155

Multiple Choice

Tilemaster Industries is considering the purchase of a $100,000 machine that is expected to result in a decrease of $15,000 per year in cash expenses.This machine,which has no residual value,has an estimated useful life of 10 years and will be depreciated on a straight-line basis.For this machine,the accounting rate of return would be

• A)10 percent.
• B)15 percent.
• C)30 percent.
• D)35 percent.

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Definitions:

Variability

How much scores differ from one another or, put another way, the amount of spread or dispersion in a set of scores.

Within-group Differences

Variability or disparities found within a single group's members rather than between different groups.

Between-group Differences

Refers to variations or discrepancies in characteristics or outcomes between distinct groups in a study.

Within-groups Df

Degrees of Freedom used within an analysis to account for variability among grouped observations or subjects.