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

question 31

Multiple Choice

A company buys a machine for $60,000 that has an expected life of 9 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 each year. What is the accounting rate of return?

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

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Definitions:

Middle Childhood

A developmental stage that covers the period from around six to twelve years of age, characterized by the development of logical thinking, independence, and identification with peers.

Preschool Years

The period in a child's life between infancy and school age, approximately from 2 to 5 years old, marked by rapid growth and development.

Spend Less Time

The act of reducing the amount of time allocated to a specific activity or tasks.

Cognitive Developments

Refers to the progression of thinking, problem-solving, and information processing abilities throughout a person's life.