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

question 132

Short Answer

A company purchases a machine for $1,000,000. The machine has an expected life of 9 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?

---

Definitions:

Leadership

The act of guiding or influencing a group towards achieving its goals.

Follower

An individual who supports and is guided by a leader or is part of a specific group or movement.

Norm Of Reciprocity

A social principle that suggests individuals respond to others in a manner that mirrors how they were treated.

Indebted

refers to the state of owing something, typically money, to another person or entity, resulting in a financial obligation.