The ABC Co

question 252

Multiple Choice

The ABC Co. is considering the purchase of a $249,000 piece of equipment. This equipment is expected to produce cash flows of $78,500, $149,000, and $80,000 over the next three years. The rate of return on this equipment is:

• A) 9.88%
• B) 11.26%
• C) 12.50%
• D) 15.23%
• E) 23.49%

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Definitions:

Standards

Established benchmarks or criteria that define the quality, quantity, and functionality of products, services, or processes.

Conduct

The manner in which a person behaves, especially on a particular occasion or in a specific context.

Safety Recommendations

Guidelines or advice intended to ensure that activities or operations are conducted in a manner that minimizes the risk of harm or injury.

Pesticides

Pesticides are chemical or biological agents used to control pests that can damage crops, animals, or carry diseases.