Multiple Choice
Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000. The
Expected rate of return on this tool is
A) 80 percent.
B) 8 percent.
C) 2 percent.
D) 20 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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