A New Manufacturing Machine Is Expected to Cost $278,000, Have

question 141

Multiple Choice

A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation. Compute the accounting rate of return for the investment.

• A) 22.7%.
• B) 24.5%.
• C) 12.2%.
• D) 46.9%.
• E) 23.4%.

---

Definitions:

Federal Judges

Appointed officials who serve in the United States federal courts, including the Supreme Court, Appeals Courts, and District Courts, responsible for interpreting and applying federal laws.

Popular Vote

The total number or percentage of votes cast by the electorate in an election, as opposed to the number of electoral votes or seats won.

Constitution

The essential rules or established standards that guide the governance of a state or any other organization.