You Are Considering an Equipment Purchase Costing $167,000

question 44

Multiple Choice

You are considering an equipment purchase costing $167,000.This equipment will be depreciated straight-line to zero over its three-year life.What is the average accounting return if this equipment produces the following net income?

• A)18.29 percent
• B)18.38 percent
• C)15.67 percent
• D)17.29 percent
• E)16.67 percent

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