TB MC Qu. 24-94 (Algo) Carmel Corporation is considering the...

Carmel Corporation is considering the purchase of a machine costing $43,000 with a 6-year useful life and no salvage value. Carmel assumes that the annual net cash flows from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average investment?

Multiple Choice

• $8,361.

• $7,167.

• $21,500.

• $25,083.

• $43,000.