Cheryl Peck Purchased a Computer Network for Her Classroom

question 16

Multiple Choice

Cheryl Peck purchased a computer network for her classroom.The computer network cost $100,000.She estimates that she can charge $500 for one session in the classroom.Cheryl knows that enrollment will increase over time.She estimates 50 students the first year,75 students the second year,100 students the third year,and 150 students the fourth year.If her cost of capital is 12 percent,what is her accounting rate of return?

• A)46.88%
• B)33.87%
• C)64.87%
• D)78.33%

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Definitions:

Validity

The ability of a test to measure what it is intended to measure.

Reliability

The ability of a test to yield nearly the same score when the same people are tested and then retested on the same test or an alternative form of the test.

Ego Defense

Psychological strategies employed by the ego to protect itself from anxiety and unacceptable thoughts and feelings.

Reaction Formation

A defense mechanism where an individual expresses feelings that are the opposite of their unconscious desires.