(Ignore Income Taxes in This Problem

question 21

Multiple Choice

(Ignore income taxes in this problem. ) The Jason Company is considering the purchase of a machine that will increase revenues by $32,000 each year.Cash outflows for operating this machine will be $6,000 each year.The cost of the machine is $65,000.It is expected to have a useful life of five years with no salvage value.For this machine,the simple rate of return is:

• A)20%
• B)40%
• C)49.2%
• D)9.2%

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Definitions:

Resigned

The act of voluntarily leaving a position or job, often submitted in writing to the employer.

Statement Of Fact

A declaration that something is true, which can be verified objectively through evidence or investigation.

10,000-Pound Load

A specific quantity often used as a standard measurement or threshold in transportation and regulation contexts.

Fraud Or Misrepresentation

Deliberate deception to secure unfair or unlawful gain, or the act of misleading or deceiving someone.