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:

Printer

A peripheral used to output text and/or graphics onto paper.

Laser Printer

A type of printer that produces output using an imaging process similar to a copier. Laser printers are the most expensive type of printer.

Interfaces

Points of interaction between different systems or components, allowing them to communicate or work together.

PC

A personal computer, commonly abbreviated as PC, is a multi-purpose electronic device designed for individual use, capable of executing commands and performing computational tasks.