A grocery store manager must decide whether to buy a carpet-cleaning machine so that the store can rent it to customers.The machine costs $800.It is expected to yield $200 in income per year.What is the expected annual return from the carpet-cleaning machine?
A) 25 percent
B) 50 percent
C) 75 percent
D) 400 percent

Question

A grocery store manager must decide whether to buy a carpet-cleaning machine so that the store can rent it to customers.The machine costs $800.It is expected to yield $200 in income per year.What is the expected annual return from the carpet-cleaning machine?  
A) 25 percent 
B) 50 percent 
C) 75 percent 
D) 400 percent

Quizplus · Accepted Answer

The expected annual return is calculated by dividing the annual income by the cost of the machine: $200 / $800 = 0.25, which is 25 percent.

A Grocery Store Manager Must Decide Whether to Buy a Carpet-Cleaning