Suppose That a New Machine Tool Having a Useful Life

question 44

Multiple Choice

Suppose that a new machine tool having a useful life of only one year costs $80,000.Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000.The expected rate of return on this tool is

• A)80 percent.
• B)8 percent.
• C)2 percent.
• D)20 percent.

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Definitions:

Value Creation

The process by which a company produces goods or services that have a value to customers, thus generating revenue for the company.

Kindle e-books

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Download

The process of receiving data from the internet or another computer system to a computer or another device.

Positioning Strategy

A marketing strategy that aims to establish a brand or product in the minds of target customers, distinguishing it from competitors.