A Company Is Considering Purchasing Factory Equipment That Costs $400,000

question 59

Multiple Choice

A company is considering purchasing factory equipment that costs $400,000 and is estimated to have no salvage value at the end of its 5-year useful life.If the equipment is purchased, annual revenues are expected to be $150,000 and annual operating expenses exclusive of depreciation expense are expected to be $25,000.The straight-line method of depreciation would be used.If the equipment is purchased, the annual rate of return expected on this equipment is

• A)37.5%.
• B)31.25%.
• C)22.5%.
• D)6.25%.

Plan and implement independent and dependent nursing interventions effectively.

Understand the importance of corporate responsibility in business success.

Recognize the role and expectations of employees in corporate social responsibility.

Distinguish between corporate communications and other communication settings.

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Definitions:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any prior learning or conditioning, such as salivating in response to the smell of food.

Food Reward

The pleasure or satisfaction derived from eating, which can influence eating behaviors and choices.

Jump Rope

An activity involving a long rope that is swung over and under an individual or individuals jumping over it, used both for exercise and as a children's game.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior learning.