Question 6.1

Accounting

Part 1:

Part 2:

Answer the Parts correctly for a Like!

Current Attempt in Progress The annual rate of return is computed by dividing expected annual cash inflows by average investment. net income by average investment. cash inflows by original investment. net income by original investment. O O A company is considering purchasing a machine that costs $360000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased annual revenues are expected to be $130000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased the annual rate of return expected on this machine is 25.56%. 51.12%. 13.06% 26.11%