A Company Buys a Machine for $60,000 That Has an Expected

question 60

Multiple Choice

A company buys a machine for $60,000 that has an expected life of 9 years and no salvage value. The company anticipates a yearly net income of $2,850 after taxes of 30%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return?

• A) 2.85%.
• B) 4.75%.
• C) 6.65%.
• D) 9.50%.
• E) 42.75%.

---

Definitions:

Resting Stage

A phase in the cell cycle or physiological process where cells or organisms are in a state of inactivity or minimal activity, preparing for subsequent activity or growth.

Skin Surface

The outermost layer of the skin that protects the body from the external environment, including pathogens and physical damage.

Hair Bulb

The rounded, bulbous base of a hair follicle containing actively dividing cells which produce the hair shaft.

Cuticle

The cuticle is a protective and waxy or hard outer layer found on the surface of plants, hairs, nails, and other surfaces, serving as a barrier against environmental damage.