Longmont Corporation is considering the purchase of a machine costing $44,000 with a 5-year useful life and no salvage value. Longmont uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating theaccounting rate of return, what is Longmont's average investment?Multiple Choice$26,400.$44,000.O $10,560.$8,800.$22,000.

Answered: $22,000.

Business

Accounting

$22,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...

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