The Only Difference Between Joe's and Moe's Is That Joe's

question 42

Multiple Choice

The only difference between Joe's and Moe's is that Joe's has old,fully depreciated equipment.Moe's just purchased all new equipment that will be depreciated over 8 years.Assuming all else equal,

• A)Joe's will have a lower profit margin.
• B)Joe's will have a lower return on equity.
• C)Moe's will have a higher net income.
• D)Moe's will have a lower profit margin.
• E)Moe's will have a higher return on assets.