Degernes Corporation is considering investing $33,000 in a new machine . The machine is expected to last five years and to have a residual value of net cash inflow from the machine is expected to be $ 7,000 . Degemes Corporation's income tax rate is 40 % Calculate the accounting rate of return ( Round your answer to the nearest tenth of a percent ) ( Note : The accounting rate of return is called the unadjusted rate of return in your textbook ) 9.8 % 20.5 % 5.9% None of the listed choices are correct 9.6 %

Degernes Corporation is considering investing $33,000 in a new machine . The machine is expected to last five years and to have a residual value of net cash inflow from the machine is expected to be $ 7,000 . Degemes Corporation's income tax rate is 40 % Calculate the accounting rate of return ( Round your answer to the nearest tenth of a percent ) ( Note : The accounting rate of return is called the unadjusted rate of return in your textbook ) 9.8 % 20.5 % 5.9% None of the listed choices are correct 9.6 %

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...

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