Delta Mu Delta Is Considering Purchasing Some New Equipment Costing

question 11

Multiple Choice

Delta Mu Delta is considering purchasing some new equipment costing $400,000.The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project.Projected net income for the four years is $18,900,$21,300,$26,700,and $25,000.What is the average accounting rate of return?

• A)11.49 percent
• B)11.63 percent
• C)12.01 percent
• D)12.49 percent
• E)13.20 percent

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Definitions:

Worldwide Competition

The phenomenon where businesses or economies compete with each other across international borders for market share, resources, and talent.

Automation

The use of technology and machinery to perform tasks with minimal human intervention, often to increase efficiency, accuracy, and productivity in various industries.

Human Resources

The department within an organization that deals with recruitment, management, and direction of people.

Competency-Based

This approach focuses on identifying and developing specific skills and competencies within an organization to optimize performance and productivity.