1. The following data applies to the next 3 questions.

A machine costs $16,000 and is expected to produce profit before depreciation of $5,000 in each of years 1 and 2, and $6,000 in each of years 3 and 4. Assume that the machine is depreciated at a constant rate of $4,000 a year and that there are no taxes.

3. How much are the average accounting earnings?

		$1,000
		$1,250
		$1,500
		$1,750
		$2,000

1 points

QUESTION 57

1. How much is the average accounting investment?

		$4,000
		$4,500
		$5,500
		$6,500
		$8,000

1 points

QUESTION 58

1. How much is the average accounting return?

		12.25%
		15%
		17.5%
		18.75%
		22.5%