A Company Is Considering Purchasing a Machine for $21,000

question 47

Multiple Choice

A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. The machine has no salvage value. What is the approximate accounting rate of return?

• A) 19%
• B) 33%
• C) 17%
• D) 10%
• E) 25%

---

Definitions:

Nursing Diagnosis

A clinical judgment about individual, family, or community experiences/responses to actual or potential health problems/life processes.

Xerostomia

A condition also known as dry mouth, resulting from reduced or absent saliva flow.

Disequilibrium

An imbalance or lack of stability in physiological systems or social situations, often leading to dysfunction or discomfort.

Malnutrition

A condition resulting from a diet lacking in essential nutrients or failing to consume adequate calories.