You Are Looking at an Investment Which Has an Initial

question 296

Multiple Choice

You are looking at an investment which has an initial cost of $400,000 and a salvage value of zero after five years. What is the average accounting return for this investment given the following annual net incomes:

• A) 1%
• B) 36%
• C) 44%
• D) 48%
• E) 55%

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Definitions:

Evolution

Any cumulative genetic changes in a population from generation to generation. Evolution leads to differences in populations and explains the origin of all the organisms that exist today or have ever existed.

Cell Theory

The scientific theory that the cell is the basic unit of life, of which all living things are composed, and that all cells are derived from pre-existing cells.

Living Organisms

Entities that exhibit the characteristics of life, including the ability to grow, reproduce, perform metabolic functions, and adapt to their environment.

Basic Units

The fundamental components or building blocks from which something is constructed or based.