Business, 17.12.2019 20:31 graygraygray6402

Acompany is planning to purchase a machine that will cost $29,400 with a six-year life and no salvage value. the company uses straight-line depreciation. the company expects to sell the machine's output of 3,000 units evenly throughout each year. a projected income statement for each year of the asset's life appears below. what is the accounting rate of return for this machine?

$117000
cost:
$52,000
depreciation on 4900
selling and administrative 39,000 96,800
income before 20,200
income tax(40% 8080
net $12,120

a. 6.00 years
b. 4.85 years.
c. 2.43 years.
d. 173 years.

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Acompany is planning to purchase a machine that will cost $29,400 with a six-year life and no salvag...

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