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:

Lightning Discharge

A sudden electrostatic discharge during a thunderstorm between electrically charged regions of a cloud, between two clouds, or between a cloud and the ground.

Protected Object

An item or entity safeguarded by specific measures against potential threats or damage.

Current Flows

The movement of electric charge carriers, such as electrons, through a conductor, creating an electric current.

Positive To Negative

Refers to the flow of conventional electric current from a point of higher potential (positive) to a point of lower potential (negative).