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What is the accounting rate of return for this machine? A company is planning to purchase a machine that will cost $34,800 with a six-year
What is the accounting rate of return for this machine?
A company is planning to purchase a machine that will cost $34,800 with a six-year life and no company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears my.UIC - Welcome salvage value. The g rate of return for this machine? http:://my.uic.edu/common/ $ 105,000 Sales Costs Manufacturing $51,200 Depreciation on machine Selling and administrative expenses 5,800 45,000 (102,000) S Income before taxes 3,000 Income tax (40%) (1,200) S Net income 1,800 5.17% 50.00% 10.34% 5.80% 33.33%
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