Multiple Choice
Machine A is bought for $200,000 and has a residual value of $80,000 after six years of use. The amortization is straight-line and the annual profit before depreciation generated by the machine is $30,000. What is the ARR?
A) 2.4%
B) 4.3%
C) 7.1%
D) 16.7%
E) 17.9%
Correct Answer:
Verified
Correct Answer:
Verified
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