Watson Corporation is considering buying a machine for $25,000.Its estimated useful life is 5 years,with no salvage value.Watson anticipates annual net income after taxes of $1,500 from the new machine.What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year?
A)6.0%.
B)8.0%.
C)8.5%.
D)10.0%.
E)12.0%.

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The Answer of Watson Corporation is considering buying a machine for $25,000.Its estimated useful life is 5 years,with no salvage value.Watson anticipates annual net income after taxes of $1,500 from the new machine.What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year?
A)6.0%.
B)8.0%.
C)8.5%.
D)10.0%.
E)12.0%.

Watson Corporation Is Considering Buying a Machine for $25,000