Question
Chris's House of Music wants to purchase TransposeIt, a system that transposes any song in its database and prints sheet music in the requested key.
Chris's House of Music wants to purchase TransposeIt, a system that transposes any song in its database and prints sheet music in the requested key. This system allows singers to obtain sheet music in keys that are suitable to their vocal range. The software for the system costs $10,600; a new computer and a laser printer costing $4,100will be needed to run the system.Chrisestimates that the system will generate additional annual sales revenue of $23,600and that annual cash expenditures will be $18,789.Chrisuses straight-line depreciation. The software, computer, and printer will have a useful life of5years. The system will have a $200salvage value at the end of its5-year useful life.
a) Calculate the accounting rate of return of the system.
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