You are considering an equipment purchase costing $167,000.This equipment will be depreciated straight-line to zero over its three-year life.What is the average accounting return if this equipment produces the following net income? $$\begin{array} { | c | r | }
\hline \text { Year } & \text { Net Income } \
\hline 1 & 15,600 \
\hline 2 & 14,200 \
\hline 3 & 13,500 \
\hline
\end{array}$$
A)18.29 percent
B)18.38 percent
C)15.67 percent
D)17.29 percent
E)16.67 percent

Question

You are considering an equipment purchase costing $167,000.This equipment will be depreciated straight-line to zero over its three-year life.What is the average accounting return if this equipment produces the following net income? $$\begin{array} { | c | r | } 
\hline \text { Year } & \text { Net Income } \
\hline 1 & 15,600 \
\hline 2 & 14,200 \
\hline 3 & 13,500 \
\hline
\end{array}$$
A)18.29 percent
B)18.38 percent
C)15.67 percent
D)17.29 percent
E)16.67 percent

Quizplus · Accepted Answer

The Answer of You are considering an equipment purchase costing $167,000.This equipment will be depreciated straight-line to zero over its three-year life.What is the average accounting return if this equipment produces the following net income? $$\begin{array} { | c | r | } 
\hline \text { Year } & \text { Net Income } \
\hline 1 & 15,600 \
\hline 2 & 14,200 \
\hline 3 & 13,500 \
\hline
\end{array}$$
A)18.29 percent
B)18.38 percent
C)15.67 percent
D)17.29 percent
E)16.67 percent

You Are Considering an Equipment Purchase Costing $167,000 A)1829 Percent B)18

You Are Considering an Equipment Purchase Costing $167,000 A)1829 Percent
B)18