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:

Stereotypes

Oversimplified and generalized beliefs or ideas about a group of people, often leading to misconceptions and biases.

Prejudices

Preconceived opinions or judgments about people or ideas that are not based on reason or actual experience.

Biased Language

Language that shows prejudice, preference, or partiality towards a particular viewpoint, group, or idea, often resulting in unfair representation.

Neutral Language

Language that is unbiased, does not express opinions, and aims to avoid offending or alienating any group of people.