Beyer Corporation Is Considering Buying a Machine for $25,000

question 81

Multiple Choice

Beyer Corporation is considering buying a machine for $25,000.Its estimated useful life is five years,with no salvage value.Beyer anticipates annual net income after taxes of $1,500 from the new machine.What is the accounting rate of return assuming that Beyer uses straight-line depreciation and that income is earned uniformly throughout each year?

• A) 6.0%
• B) 8.0%
• C) 8.5%
• D) 10.0%
• E) 12.0%

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Definitions:

HPG Axis

The hypothalamic-pituitary-gonadal axis, a system of hormone interactions that regulate reproductive and sexual development.

Secular Trend

A pattern in which the average age of puberty in developed countries declines across decades.

Growth Hormone

A protein hormone secreted by the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans and other animals.

Hypothalamus

A region of the brain that regulates many bodily functions, including hunger, thirst, temperature, and the release of hormones.