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.

---

Definitions:

Subcutaneous Adipose Tissue

refers to the layer of fat cells below the skin that provides insulation, energy storage, and protection.

Blood Vessel

Cylindrical vessels that transport blood throughout organs and tissues, including veins, arteries, and capillaries.

Dermis

The dermis is the thick layer of living tissue below the epidermis that contains nerve endings, sweat glands, hair follicles, and blood vessels, providing strength and elasticity to the skin.

Blood Clot

A gel-like mass formed by platelets and fibrin in the blood to stop bleeding by sealing wounds.