Acompany buys a machine for $64,000 that has an expected life of 5 years and no salvage value. the company anticipates a yearly net income of $3,050 after taxes of 38%, with the cash flows to be received evenly throughout each year. what is the accounting rate of return?

Accounting rate of return = Incremental accounting income / Investment

Incremental accounting income = Yearly net income = $3,050
Initial investment = $64,000

Therefore,
Accounting rate  of return = 3050/64000 = 0.0477 = 4.77%

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Gxhxhhzhxh. hxjxjxkkxocj jf