An Initial Investment of $180,000 Is Expected to Generate $90,000

question 114

Multiple Choice

An initial investment of $180,000 is expected to generate $90,000 in annual cost savings over the asset's expected 3-year life.Assume straight-line depreciation and ignore income taxes.The accounting rate of return based on initial investment is _____.

• A)41.67%
• B)8.33%
• C)16.67%
• D)none of these answers is correct

Identify the concepts of obsessive-compulsive disorder (OCD) and how compulsions and obsessions manifest.

Comprehend the impact of traumatic events leading to posttraumatic stress disorder (PTSD) and its symptoms.

Understand how conditioning and learning theories explain the development of phobias and other anxiety disorders.

Recognize disorders related to excessive behaviors, such as hoarding disorder and excoriation disorder.

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Definitions:

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a certain interest rate.

Future Value

The amount a present sum will grow into at a specified interest rate over a specified period of time.

Profitability Index

A calculation that determines the relationship between the costs and benefits of a proposed project through the ratio of present value of future cash flows over the initial investment.