A Company Purchases a Machine for $84,000

question 18

Essay

A company purchases a machine for $84,000.The machine has an expected life of 12 years and no salvage value.The company anticipates a yearly net income of $41,000 after taxes of 32% to be received uniformly throughout each year.What is the accounting rate of return?

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Definitions:

Commodity Items

Basic goods that are interchangeable with other goods of the same type and useful in commerce or trade.

Technology Newness

The degree to which technology is novel or untested, which can impact a project's risk profile and the need for specialized expertise.

DPCI Score

A metric or score, possibly specific to a certain context or organization, not recognized universally as a standardized metric.

Darnall-Preston Complexity Index

A framework used to assess the complexity of managing projects, focusing on organizational, external, and technological factors.