The Manager at Nielson's Paper Purchased a New Upgraded Machine

question 54

Multiple Choice

The manager at Nielson's Paper purchased a new upgraded machine with an initial investment of $409,000 and forecasted an increase in expected average annual after-tax operating income of $34,400.
Required
Compute the accrual accounting rate of return (AARR) .

• A)AARR=0.065,or 6.5% per year
• B)AARR=0.074,or 7.4%per year
• C)AARR=0.056,or 5.6% per year
• D)AARR=0.084,or 8.4% per year
• E)AARR=0.102,or 10.2% per year

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Definitions:

Frederick Douglass

An American social reformer, abolitionist, orator, writer, and statesman, who after escaping from slavery in Maryland, became a national leader of the abolitionist movement.

Abolitionist Literature

Literature aimed at fighting against slavery and the slave trade, created by both enslaved and free people.

First Amendment

An amendment to the US Constitution that ensures freedoms concerning religion, expression, assembly, and the right to petition.

Andrew Jackson

The seventh President of the United States, known for his policies towards Native American removal, founding of the Democratic Party, and his role in the War of 1812.