A Company Buys a Machine for $60,000 That Has an Expected

question 40

Multiple Choice

A company buys a machine for $60,000 that has an expected life of 9 years and no salvage value.The company uses straight-line depreciation.The company anticipates a yearly net income of $2,850 after taxes of 30%,with the cash flows to be received evenly throughout each year.What is the accounting rate of return?

• A)2.85%.
• B)4.75%.
• C)6.65%.
• D)9.50%.
• E)42.75%.

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Definitions:

Remedial Model

An approach focused on correcting or remedying a problem, often relating to educational strategies or therapeutic interventions.

Mental Health

A state of well-being in which individuals realize their own abilities, can cope with the normal stresses of life, work productively, and contribute to their community.

Socialization

is the process through which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or social group.

Program Activities

Specific actions, events, or operations designed to fulfill the objectives of a program or initiative.