Multiple Choice QuestionAssume straight-line depreciation. A company plans to purchase machinery costing $1,000,000 with salvage value of $200,000 after 4 years. Annual income is expected to be $40,000 during the 4 years. Calculate the accounting rate of return. Round your answer to the nearest tenth of a percent.Multiple choice question.6.7%15.0%13.3%5.0%

Fill in the Blank QuestionFill in the blank question.Assume straight-line depreciation and equal cash flows. A company plans to purchase equipment for $25,000. The equipment will have $0 salvage value and increase income by $7,500 annually during its 5-year life. The accounting rate of return is %.

A company purchases machinery for $100,000 with an estimated useful life of 5 years and no residual value. If the company uses the straight-line depreciation method, what is the annual depreciation expense?(5 Points)$10,000$20,000$25,000$30,000

2a) A company is considering investing in a new project that requires an initial investment of $50,000. The project is expected to generate cash inflows of $10,000 per year for the next five years. The salvage value of the project at the end of the fifth year is estimated to be $5,000. The company uses straight-line depreciation for all its capital investments. Calculate the Accounting Rate of Return for this project. 2b) Suppose a company is considering a new project that requires an initial investment of $50,000. The company's cost of capital 8%. What is the NPV of the project?

Machinery is purchased for $140,000. It is estimated that it has a useful life of 5 years and a residual value of $20,000. Using the straight-line method, calculate the amount of annual depreciation to be charged.$28,000$14,000$24,000$12,000

A machine is purchased for $60 000. It is estimated that it has a useful life of 5 years and will then be sold for $5000. Using the straight-line method, calculate the amount of depreciation to be charged for each year of useful life.Group of answer choices$5000$12 000$0$11 000