A New Manufacturing Machine Is Expected to Cost $286,000, Have

question 37

Multiple Choice

A new manufacturing machine is expected to cost $286,000, 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) 22.2%.
• B) 23.4%.
• C) 46.9%.
• D) 12.2%.
• E) 24.5%.

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Definitions:

QRS Complex

A series of waves in an electrocardiogram representing ventricular depolarization preceding the contraction of the heart ventricles.

Atrial Fibrillation

A heart rhythm disorder characterized by rapid and irregular beating of the upper chambers of the heart, known as atria.

Ventricular Fibrillation

A life-threatening heart rhythm that results in rapid, erratic electrical impulses from the ventricles, leading to inefficiency in blood circulation.

Premature Ventricular Contractions

Early heartbeats originating from the ventricles of the heart, experienced as a palpitation.