A New Machine Will Cost $30,000 and Is Expected to Produce

question 63

Multiple Choice

A new machine will cost $30,000 and is expected to produce income of $7,000 in year 1, $9,000 in year 2, $12,000 in year 3 and $15,000 in year 4. The company will depreciate the equipment fully using the straight-line method over the same four year period. What is the average accounting return (ARR) of the project?

• A)​143%
• B)​71.66%
• C)​46.66%
• D)​35.83%

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Definitions:

Perimysium

A layer of connective tissue that groups muscle fibers into bundles or fascicles within a muscle.

Epimysium

The outermost layer of connective tissue that surrounds skeletal muscles.

Endomysium

The thin layer of connective tissue that wraps each individual muscle fiber, aiding in the transmission of force and nourishment of the cell.

Excitability

The ability of a cell or tissue to respond to a stimulus, particularly noticed in nerve and muscle cells.