Managerial Accounting

17.Pid has invested in a machine that cost $70,000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to:
A)7.1%.
B)8.2%.
C)10.7%.
D)39.3%

  1. 👍 0
  2. 👎 0
  3. 👁 135
asked by Dovey
  1. 234

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Simple Rate of Return

    17.Pid has invested in a machine that cost $70,000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its

    asked by Help!!! on December 13, 2006
  2. Simple Rate of Return

    (Ignore income taxes in this problem.) Dum Luk & Stoo Pid has invested in a machine that cost $70,000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being

    asked by Help!!! on December 13, 2006
  3. finance

    Nucore Company is thinking of purchasing a new candy-wrapping machine at a cost of $370,000. The machine should save the company approximately $70,000 in operating costs per year over its estimated useful life of 10 years. The

    asked by neil on September 25, 2007
  4. Financial Management

    The management of cooper Equipment is planning to purchase a new milling machine that will cost 160,000 installed.The old machine has been fully depreciated but can be sold for 15,000. The new machine will be depreciated on a

    asked by Ruth on March 15, 2008
  5. accounting

    A company purchased a machine on January 1 of the current year for $750,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours, with a salvage value of $75,000).

    asked by Dan on August 25, 2012
  6. Accounting

    A company is considering replacing an old machine which had an initial cost of $100,000 and has $75,000 of accumulated depreciation to date.The company is considering purchasing a new machine which costs $195,000.The old machine

    asked by Mike on December 10, 2017
  7. Managerial Accounting

    John has invested in a machine that cost $70,000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its

    asked by Really Need Acc. Help on December 14, 2006
  8. finance

    Johnson Ltd a manufacturer of office equipment is considering purchasing a new machine for $2,000,000. The company is expecting an annual cash inflow of $1,220,000 from the sale of the products and an annual cash outflow of

    asked by anonymous on July 9, 2019
  9. Finance - Net Advantage to Leasing

    Net advantage to leasing) Arkansas Instruments (AI) can purchase a sonic cleaner for $1,000,000. The machine has a five-year life and would be depreciated straight line to a $100,000 salvage value. Hibernia Leasing will lease the

    asked by Dantes on October 20, 2011
  10. college finite math

    A product may be made using Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $17,000, whereas the monthly fixed costs of using Machine II are $14,000. The variable costs of

    asked by Dee on January 19, 2014

More Similar Questions