Assume a Machine That Has a Useful Life of Only

question 219

Multiple Choice

Assume a machine that has a useful life of only one year costs $2,000.Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300.The expected rate of return on this machine is

• A)7.5 percent.
• B)10 percent.
• C)15 percent.
• D)20 percent.

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Definitions:

Licensing Agreement

A legal contract where a licensor allows a licensee to use certain property, such as patents or trademarks, under agreed terms.

Footwear Company

A business entity that designs, manufactures, markets, and sells shoes and related products.

Foreign Company

A business entity that is registered, operates, or is headquartered in a country other than the one where it conducts most of its operations or where its main investors reside.

Home-Country Criticisms

Critique or negative feedback directed towards a company or individual from their country of origin, often related to their actions or policies perceived negatively abroad.