The Following Data Pertain to an Investment Proposal The Income Tax Rate Is 30

question 146

Multiple Choice

The following data pertain to an investment proposal: $\begin{array}{lr}\text { Required equipment investment } & \$ 120,200 \\\text { Annual cost savings } & \$ 31,700 \\\text { Projected life of investment } & 5 \text { years } \\\text { Projected salvage value } & \$ 0\\\text { Required rate of return }&9\%\end{array}$ The income tax rate is 30%. To which amount is the internal rate of return on this investment closest?

• A) 3.8%
• B) 10.0%
• C) 9.0%
• D) 38.1%

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Definitions:

Holocaust

The genocide of approximately six million European Jews during World War II, as part of a systematic extermination plan orchestrated by Nazi Germany.

Authority

Legitimate, institutionalized power.

Conformity

The act of aligning one's attitudes, beliefs, and behaviors with those of a group or society's standards or norms.

Asch's Research

Research conducted by Solomon Asch that focused on conformity, demonstrating how social pressure can influence individuals to conform to incorrect answers in a group setting.