Suppose That a New Machine Tool Having a Useful Life

question 44

Multiple Choice

Suppose that a new machine tool having a useful life of only one year costs $80,000.Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000.The expected rate of return on this tool is

• A)80 percent.
• B)8 percent.
• C)2 percent.
• D)20 percent.

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Definitions:

Dependent Variable

A variable in a study or model that is expected to change in response to manipulations or changes in another variable, known as the independent variable.

Proficiency Test

A test designed to measure the ability, skill, or knowledge in a particular area or field.

Prediction Interval

A range of values that is likely to include the outcome of a single new observation based on a predictive model or past data.

Proficiency Test

An assessment designed to measure an individual's knowledge or skill in a particular area or discipline.