Assume a machine which has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. The expected rate of return on this machine is:
A)7. 5 percent.
B. 10 percent.
C. 15 percent.
D. 20 percent.
Answer:C
Assume a machine which has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. The expected rate of return on this machine is:
A)7. 5 percent. B. 10 percent. C. 15 percent. D. 20 percent.