Watson Corporation is considering buying a machine for $45,000. Its estimated useful life is 5...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Watson Corporation is considering buying a machine for $45,000. Its estimated useful life is 5 years, with no salvage value. Watson anticipates annual net income after taxes of $1,800 from the new machine. What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year?
Multiple Choice
4.0%.
5.3%.
5.0%.
6.7%.
8.0%.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
