Consider a Machine That Costs $50,has an Economic Life of One

question 36

Multiple Choice

Consider a machine that costs $50,has an economic life of one year,and produces output worth $63.The rate of return on capital is _____%.

• A)26
• B)13
• C)63
• D)50

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Definitions:

Quick Assets

Liquid assets that can be rapidly converted into cash without significantly affecting their value, including cash, marketable securities, and receivables.

Current Receivables

Financial assets expected to be converted into cash within one year, including money owed by customers (accounts receivable).