Question: Question 9 (3 points) Pennock Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in

Question 9 (3 points) Pennock Corp. is considering the purchase of

Question 9 (3 points) Pennock Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $159,600. The equipment will have an initial cost of $532,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $14,000, what is the accounting rate of return? OA) 19.28% OB) 47.11% OC) 152.37% OD 30.00%

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