Veritas Ltd is considering investing in a new machine which costs $450 000.For accounting purposes this machine can be fully depreciated over 6 years;but for tax purposes,the machine can be fully depreciated over 5 years.The machine has no resale value.The annual cost savings resulting from the purpose of this machine is $100 000.Assume a tax rate of 30 per cent.The accounting rate of return is:

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The Answer of Veritas Ltd is considering investing in a new machine which costs $450 000.For accounting purposes this machine can be fully depreciated over 6 years;but for tax purposes,the machine can be fully depreciated over 5 years.The machine has no resale value.The annual cost savings resulting from the purpose of this machine is $100 000.Assume a tax rate of 30 per cent.The accounting rate of return is:

Veritas Ltd Is Considering Investing in a New Machine Which