Carmel corporation is considering the purchase of a machine costing $41,000 with a 8-year useful life and no salvage value. carmel uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. in calculating the accounting rate of return, what is carmel's average investment? multiple choice
a. $5,125.
b. $23,063.
c. $41,000.
d. $5,766.
e. $20,500.

E. $20,500

Explanation:

The average investment is defined as the average between the initial investment and the salvage value of the equipment.

In this situation, Carmel Corporation had an initial investment of $41,000 for the machine and its salvage value is zero. Therefore, Carmel's average investment is:

The answer is alternative E. $20,500

first one

explanation:

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.