Rayburn Corporation Purchased a New Machine for $120,000

question 50

Multiple Choice

Rayburn Corporation purchased a new machine for $120,000.The machine has an estimated useful life of 10-years with no salvage value and a return on investment (ROI) of 15%.ROI is computed using annual cash flows and straight-line depreciation.What is the annual cash flow using the gross book value method?

• A)$12,200.
• B)$18,000.
• C)$28,200.
• D)$30,000.

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Definitions:

Fast-Second Strategies

A business approach where companies quickly follow pioneers in a new market or technology, leveraging the groundwork laid by the first movers.

Dominant Firms

Refers to companies that have a major share of the market and significant influence over the prices and availability of products or services.

Start-Up Firms

Newly established businesses often characterized by innovation, scalability, and high growth potential.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.