Assume a Machine Which Has a Useful Life of Only

Multiple Choice

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.