A Company Buys a Machine for $60,000 That Has an Expected

question 92

Multiple Choice

A company buys a machine for $60,000 that has an expected life of nine years and no salvage value.The company anticipates a yearly net income of $2,850 after taxes of 30%,with the cash flows to be received evenly throughout of each year.What is the accounting rate of return?

• A) 2.85%
• B) 4.75%
• C) 6.65%
• D) 9.50%
• E) 42.75%

Understand and calculate corporate tax liabilities and adjusted tax payments.

Analyze and compute total operating capital from balance sheets.

Determine the impact of depreciation changes on net after-tax income using tax and accounting principles.

Identify the components included in annual financial statements.

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Definitions:

Depressed

A mood disorder characterized by persistent sadness, loss of interest, and a lack of pleasure in daily activities.

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Self-Blame

The act of holding oneself responsible for an event or situation, often negatively affecting one's mental health.

Hostility Toward Women

Antipathy or aggression directed specifically at women, often stemming from sexism or misogyny.