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A machine costs $300,000 and is expected to yield an after-tax net income of $9,000 each year. Management predicts this machine has a 8-year service
A machine costs $300,000 and is expected to yield an after-tax net income of $9,000 each year. Management predicts this machine has a 8-year service life and a $60,000 salvage value, and it uses straight-line depreciation. Compute this machines accounting rate of return.
Accounting Rate of Return | |||||
Choose Numerator: | / | Choose Denominator | = | Accounting Rate of Return | |
Annual After Tax Net Income | / | Annual Average Investment | = | ||
= |
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