A Company Buys a Machine for $76,000 That Has an Expected

question 139

Multiple Choice

A company buys a machine for $76,000 that has an expected life of 6 years and no salvage value.The company uses straight-line depreciation.The company anticipates a yearly after tax net income of $1,805.What is the accounting rate of return?

• A)2.85%.
• B)4.75%.
• C)6.65%.
• D)9.50%.
• E)42.75%.