A corporation is considering the purchase of new equipment


A corporation is considering the purchase of new equipment costing $80,000. The projected annual cash inflow from the purchase of the machine is $4,000 per year and the projected annual cash inflow is $8,000 per year. The equipment has a useful life of 4 yeats with a $20,000 salvage value. What is the accounting rate of return for the equipment purchase?

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Financial Accounting: A corporation is considering the purchase of new equipment
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