The Following Data Concerns a Proposed Equipment Purchase: Cost $144,000

question 51

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 (ignore income taxes) :

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

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Definitions:

Intense Mental

Refers to a state of extreme mental concentration or focus.

Sensory Receptor

Cells or structures specialized to detect changes in the environment (such as light, heat, or pressure) and trigger appropriate responses.

Deep Pressure

A form of tactile sensory input characterized by firm, steady pressure applied to the body, often used therapeutically to reduce stress or anxiety.

Light Touch

A sensory perception triggered by a light pressure that activates mechanoreceptors in the skin.