Gunslinger Company Is Considering the Purchase of Pipe Cutting Equipment

question 51

Multiple Choice

Gunslinger Company is considering the purchase of pipe cutting equipment. Data on the equipment are as follows: The company uses the straight-line method of depreciation with no mid-year convention.
What is the accounting rate of return on original investment rounded to the nearest percent, assuming no taxes are paid?

• A) 22.86%
• B) 2.86%
• C) 18%
• D) 4.86%

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Definitions:

Executive Compensation

The payment and benefits package given to top management and executives in a company, which may include salary, bonuses, stock options, and other perks.

Pay Unfairness

Situations or perceptions where compensation, wages, or rewards are seen as unjust, biased, or not equitably distributed among employees.

Executive Compensation

The financial payments and other benefits given to high-level management in a corporation.

Pay Secrecy

Policies or practices that prohibit employees from discussing or disclosing their own salaries or wages with their colleagues, often contested for hindering wage transparency.