q6 Win Corporation is considering the purchase of wood cutting equipment. Data on the equipmentare as follows:Original investmentNet annual cash inflowExpected economic life in yearsSalvage value at the end of five yearsP30,000P12,6005P3,000The company uses the straight-line method of depreciation. What is the accounting rate of returnon original investment rounded off to the nearest percent, assuming no taxes are paid?O 42.0%O 20.0%O 24.0%O 22.0%

Under straight line depreciation, equal amount is being charged as depreciation in every year of…

Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment are as follows: Original investment Net annual cash inflow Expected economic life in years Salvage value at the end of five years The company uses the straight-line method of depreciation. What is the accounting rate of return on original investment rounded off to the nearest percent, assuming no taxes are paid? P30,000 P12,600 P3,000 42.0% O 20.0% O 24.0% O 22.0%

Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment are as follows: Original investment Net annual cash inflow Expected economic life in years Salvage value at the end of five years The company uses the straight-line method of depreciation. What is the accounting rate of return on original investment rounded off to the nearest percent, assuming no taxes are paid? P30,000 P12,600 P3,000 42.0% O 20.0% O 24.0% O 22.0%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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