Use the Following Information for Questions

question 120

Multiple Choice

Use the following information for questions
A company is considering purchasing factory equipment that costs $480,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $135,000 and annual operating expenses exclusive of depreciation expense are expected to be $39,000. 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) 40.0%.
• B) 7.5%.
• C) 15.0%.
• D) 20.0%.

---

Definitions:

Minority Group Members

Individuals belonging to a smaller segment within a population, often distinguished by racial, religious, ethnic, or socio-economic differences.

Discrimination

Unfair treatment or prejudice against people based on race, age, gender, or other characteristics rather than individual merit.

Employment

A relationship between an employer and an employee where the employee is paid for carrying out assigned tasks.

Discrimination

Unfair treatment or prejudice against individuals or groups based on characteristics such as race, gender, age, or sexual orientation.