Why Might the Accounting Rate of Return Be Low in the Initial

question 54

Multiple Choice

Why might the accounting rate of return be low in the initial years of an investment?

• A)Because the depreciation tax shield is negative
• B)Because customers are not willing to spend money in the initial years
• C)Because the investment base will be higher in the initial years
• D)Because the company must pay for the investment at the beginning of the first year

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Definitions:

Sleep

A natural, reversible state of reduced responsiveness to external stimuli, essential for human health and well-being.

Positive Outlook

An optimistic attitude that focuses on expecting good and positive outcomes.

Anorexia Nervosa

Loss of appetite; with anorexia nervosa, loss of appetite for food not explainable by disease, which may be a part of psychosis.

Hypokalemia

A condition where there is a low level of potassium in the bloodstream.