$$\text { Reference: } 10 - 11$$ Purvell Company Has Just Acquired a New Machine

question 33

Multiple Choice

$$\text { Reference: } 10 - 11$$ Purvell Company has just acquired a new machine. Data on the machine follow: $$\begin{array} { | l | l | } \hline \text { Purchase cost } & \$ 50,000 \\\hline \text { Annual cost savings } & \$ 15,000 \\\hline \text { Life of the machine } & 8 \text { years } \\\hline\end{array}$$ The company uses straight-line depreciation and a $5,000 salvage value. (The company considers salvage value in making depreciation deductions.) Assume cash flows occur uniformly throughout a year.
-The simple rate of return would be closest to?

• A)17.5%.
• B)30.0%.
• C)18.75%.
• D)12.5%.

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Definitions:

Emotional Expressions

The outward display of feelings such as happiness, anger, or fear, through facial expressions, body language, and vocal tone.

Unhappiness

A feeling of sadness, or not being satisfied or content with life or the current situation.

Basic Emotions

Fundamental emotions that are hard-wired in humans and include happiness, sadness, fear, disgust, surprise, and anger.

Cognitive Response

The internal thought process and mental activities triggered by external stimuli, influencing how information is perceived, processed, and remembered.