Question $5$

$1$ Point

Cardinal Company purchased a new machine for $$125,000.$ The machine will last eight years and will be depreciated using the straight$-$line method. The estimated residual value of the machine is zero and should generate a yearly cash inflow of $$30,000.$ Ignoring taxes, what is the accounting rate of return?

$3\mathrm{.}65\%$

$11\mathrm{.}50\%$

$23\mathrm{.}00\%$

$24\mathrm{.}00\%$