A Company Purchases a Machine for $1,000,000

question 139

Essay

A company purchases a machine for $1,000,000.The machine has an expected life of nine years and no salvage value.The company anticipates a yearly net income of $60,000 after taxes of 30% to be received uniformly throughout each year.What is the accounting rate of return?

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Definitions:

Output Empty

Indicates that a system or module has no current output signals or data to send, possibly standing by for new instructions or input.

Examine If Closed

Instructs to check whether a circuit or contact is in a closed state, indicating a continuous electrical path.

XIC

Acronym for "Examine If Closed," a common instruction used in programmable logic controllers (PLCs) to check if a contact or switch is closed.