A New Manufacturing Machine Is Expected to Cost $278,000,have an Eight-Year

question 72

Multiple Choice

A new manufacturing machine is expected to cost $278,000,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)22.7%.
• B)23.4%.
• C)46.9%.
• D)12.2%.
• E)24.5%.

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Definitions:

Beta-Adrenergic Medication

Drugs that mimic the effect of adrenaline on the body, commonly used to treat heart conditions, asthma, and improve heart performance.

Nebulizer

A device that delivers medication in the form of a mist inhaled into the lungs.

Irregular Pulse

A heartbeat rhythm that varies or deviates from the normal sequence of the heart's beats.

Eardrops

Medicated solutions applied in the ear canal to treat infections, relieve pain, or soften earwax.