MC Qu. 99 The following data concerns a proposed equipment...

The following data concerns a proposed equipment purchase:

Cost	$	152,000
Salvage value	$	8,000
Estimated useful life		4	years
Annual net cash flows	$	50,100
Depreciation method	Straight-line

Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:

Multiple Choice

• $50,100

• $14,100

• $16,100

• $86,100

• $48,100