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Refer to the Data Provided in Table 11 -Refer to Table 11

question 172

Multiple Choice

Refer to the data provided in Table 11.1 below to answer the following question(s) .
Table 11.1  Total Investment Expected Rate of Return  Project  (dollars)   (percentage)   New tablet computer for sales staff $500,00022 Remodel for distribution center $400,00018 On-site day care center $200,00010 Employee fitness center $100,0008\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New tablet computer for sales staff } & \$ 500,000 & 22 \\\text { Remodel for distribution center } & \$ 400,000 & 18 \\\text { On-site day care center } & \$ 200,000 & 10 \\\text { Employee fitness center } & \$ 100,000 & 8\end{array}\end{array}
-Refer to Table 11.1. If the interest rate is 20%, Nashbar Bicycle's total investment would be

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Definitions:

Services

Economic activities that are intangible, are not stored, and do not result in ownership transfer from the service provider to the service receiver.

Double-Entry

An accounting principle where every transaction is entered twice, as a debit in one account and a credit in another, to keep the accounting equation balanced.

Accounting Equation

The fundamental principle of accounting that represents the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.

Journal Entry

A record in the books of accounts that represents a business transaction, including information like date, accounts affected, and amounts.

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