A New Manufacturing Machine Is Expected to Cost $278,000,have an Eight-Year

question 72

Multiple Choice

A new manufacturing machine is expected to cost $278,000,have an eight-year life,and a $30,000 salvage value.The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation.Compute the accounting rate of return for the investment.

• A)22.7%.
• B)23.4%.
• C)46.9%.
• D)12.2%.
• E)24.5%.

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Definitions:

Government Regulation

The act of controlling, directing, or managing activities, often through rules and regulations, by government entities.

Media Ownership

The control or possession of media companies by individuals or corporations, which impacts the diversity of viewpoints presented.

Free Market

An economic system where prices for goods and services are determined by open competition among businesses, without government intervention.

Radio Pirates

Individuals or organizations that operate a radio station without a legal license, often broadcasting content not covered by mainstream outlets.