Sunland Corp management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight line basis over a five year period The sales and expenses (excluding depreciation) for the next five years are shown in the following table The companys tax rate is 34 percent Year 1 Year 2 Year 3 Year 4 Year 5 Sales $126,450 $178,875 $246,455 $260,440 $266,125 Expenses $139,410 $132,488 $147,289 $145,112 $130,556 Sunland will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent Calculate accounting rate of return (Round answer to 1 decimal place, e g 15 2 )

The Answer is in the image, click to view ...

Question: Sunland Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The

Sunland Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The companys tax rate is 34 percent.

	Year 1	Year 2	Year 3	Year 4	Year 5
Sales	$126,450	$178,875	$246,455	$260,440	$266,125
Expenses	$139,410	$132,488	$147,289	$145,112	$130,556

Sunland will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent.

Calculate accounting rate of return. (Round answer to 1 decimal place, e.g. 15.2%.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Sunland Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding...

Calculate accounting rate of return. (Round answer to 1 decimal place, e.g. 15.2%.) Accounting rate of return enter the Accounting rate of return in percentages rounded to 1 decimal place % Sunland...

Blossom Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding...

Sheridan court management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight line basis over a five-year. The sales and expenses excluding depreciation...

Terrell Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding...

Cullumber Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding...

How do i find the accounting rate of return? Columber Corp, management is considering purchasing a machine that will cost $117.250 and will be depreciated on a straight-line basis over a five-year...

1. Which sales technique discussed in Chapter 16 best describes the one used by Joel? Explain. 2. Why might Joels sales technique be considered manipulative? 3. In the context of this marketing...

Recall the algorithm for counting number of inversions in an array A[1..n]. Let a pair (i, j) be called a significant inversion if i 2. A[j]. Give an O(n-lg(n)) algorithm for counting the number of...

E13.11 Apply definition and recognition criteria for liabilities. LO7 The Conceptual Framework defines liabilities and outlines a number of criteria for their recognition. a-Forden and a-Holden...

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

Use the information in Exercise 2-7 to prepare an August 31 trial balance for Pose-for-Pics. Begin by opening these T-accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; M....

Interpreting the debt ratio and return on assets: a. Calculate the debt ratio and the return on assets using the year-end information for each of the follow ing six separate companies ($ thousands)....

Preparing general journal entries: Use information from the T-accounts in Exercise 2-18 to prepare general journal entries for each of the seven transactions a through g.