The Following Data Concerns a Proposed Equipment Purchase

question 64

Multiple Choice

The following data concerns a proposed equipment purchase:
Cost……….. $144,000
Salvage value ……….. $ 4,000
Estimated useful life ……….. 4 years
Annual net cash flows ………..$ 46,100
Depreciation method ……….. Straight-line
Assuming that net cash flows are received evenly throughout the year,the accounting rate of return is:

• A)62.3%.
• B)32.0%.
• C)15.0%.
• D)7.7%.
• E)5.0%.

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Definitions:

Vitamin C

An essential vitamin and antioxidant found in various fruits and vegetables, known for its role in supporting the immune system, skin health, and aiding in the absorption of iron.

Vitamin A

An essential fat-soluble vitamin important for growth and development, immune function, and vision.

Human Papillomavirus (HPV)

A group of viruses that can cause genital warts and are associated with several cancers, including cervical cancer.

Cervical Cancer

A type of cancer that occurs in the cells of the cervix — the lower part of the uterus that connects to the vagina.