A Firm Has an Average Investment of $10,000 During the Year

question 46

Multiple Choice

A firm has an average investment of $10,000 during the year. During the same period, the firm generates after-tax income of $1,000. If the cost of capital is 15 percent, what is the net return on the investment?

• A)15 percent
• B)−5 percent
• C)10 percent
• D)5 percent

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Definitions:

Non-REM Sleep

A state of sleep that includes all sleep stages except for REM (rapid eye movement) sleep, characterized by slower brain waves and reduced brain activity.

Night Terrors

A sleep disorder causing feelings of panic or dread, typically occurring in children during non-REM sleep.

Rapid Eye Movements

Quick, simultaneous movements of both eyes in the same direction, which occur in phases of sleep associated with vivid dreaming.

REM Sleep Behaviour Disorder

A sleep disorder characterized by the acting out of dreams during the REM (Rapid Eye Movement) stage of sleep.