Microsoft Co. is considering the purchase of a P100,000 machine that is expected to
result in a decrease of P15,000 per year in cash expenses. This machine, which has
no residual value, has an estimated useful life of 10 years and will be depreciated on a
straight-line basis. For this machine, the accounting rate of return would be
Selected
Answer:
a.
10 percent.
Answers:
a.
10 percent.
b.
15 percent.
c.
35 percent.
d.
30 percent.
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