Pullman Farm and Factory is considering purchasing a new combine The combine has the following details Cost of Combine $80,000 (with no salvage value) Useful life 10 years Income before Depreciation $16,000 Pullman Farm and Factory is going to use an Accounting Rate of Return to determine if it will buy the combine What is the Accounting Rate of Return A 10 00 B 8 00 C 5 00 D 4 00 E None of the Above

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Question: Pullman Farm and Factory is considering purchasing a new combine. The combine has the following details: Cost of Combine = $80,000 (with no salvage value)

Pullman Farm and Factory is considering purchasing a new combine. The combine has the following details:
- Cost of Combine = $80,000 (with no salvage value)
- Useful life =10 years
- Income before Depreciation = $16,000

Pullman Farm and Factory is going to use an Accounting Rate of Return to determine if it will buy the combine. What is the Accounting Rate of Return?

A. 10.00%

B. 8.00%

C. 5.00%

D. 4.00%

E. None of the Above

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