A company is planning to purchase a machine that will cost $31,200 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine

44.87%

Explanation:

Note: Missing word have been attached as picture below

Average Investment = (Initial Investment + Scrap Value) / 2

Average Investment = [$31,200 + $0] / 2

Average Investment = $31,200/2

Average Investment = $15,600

Accounting Rate of Return = Net Income/Average Investment*100

Accounting Rate of Return = $7,000/$15,600 * 100

Accounting Rate of Return = 0.44871795 * 100

Accounting Rate of Return = 44.87%

account balance book uk

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!