29 Jun Question Multiple Choice Question 140
Question
Multiple Choice Question 140
Larkspur Company is considering buying equipment for $360000 with a useful life of 5 years and an estimated salvage value of $22000. If annual expected income is $28000, the denominator in computing the annual rate of return is
$180000.
$360000.
$191000.
$382000.
Multiple Choice Question 141
Splish Brothers Company had an investment which cost $400000 and had a salvage value at the end of its useful life of zero. If Mussina’s expected annual net income is $15000, the annual rate of return is:
3.75%.
7.50%.
10.13%
9.38%
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