A Machine Costs $180,000 and Will Have an Eight-Year Life,a

question 33

Multiple Choice

A machine costs $180,000 and will have an eight-year life,a $20,000 salvage value,and straight-line depreciation is used.Management estimates the machine will yield an after-tax net income of $12,500 each year.Compute the accounting rate of return for the investment.

• A)12.5%.
• B)26.8%.
• C)11.8%.
• D)10.8%.
• E)22.5%.

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Definitions:

Psychiatric Hospitals

Healthcare facilities specializing in the treatment of serious mental disorders, such as schizophrenia or bipolar disorder.

Axonal Degeneration

Axonal degeneration is a process where the axon, the long slender projection of a nerve cell, deteriorates which can lead to various neurological disorders.

Psychogenic Disorder

A disorder with psychological origins, where mental factors play a significant role in developing or causing physical symptoms.

Somatogenic Disorder

A mental disorder that is believed to have a physical, biological basis or cause.