Assume a Machine Which Has a Useful Life of Only

question 166

Multiple Choice

Assume a machine which has a useful life of only one year costs $2,000.Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300.The expected rate of return on this machine is:

• A)7.5 percent.
• B)10 percent.
• C)15 percent.
• D)20 percent.

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Definitions:

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, aiming to balance the interests of stakeholders.

Socially Responsible

A commitment to act ethically and contribute to economic development while improving the quality of life of the workforce, their families, and the community at large.

Ethical Responsibility

a principle that individuals and organizations are expected to behave in a manner that considers the moral implications of their actions.

External Regulations

Rules and standards imposed by external entities, such as governments and regulatory bodies, that organizations are required to follow.