The following data concerns a proposed equipment purchase: cost $144,000 salvage value $4,000 estimated useful life 4 years annual net cash flows $46,100 depreciation method straight-line the annual average investment amount used to calculate the accounting rate of return is:

a.$72,000
b.$70,000
c.$37,000
d.$74,000
e.$48,950

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease