An Initial Investment of $270,000 Is Expected to Generate $180,000

question 6

Multiple Choice

An initial investment of $270,000 is expected to generate $180,000 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)11.11%
• B)44.44%
• C)33.33%
• D)none of these answers is correct

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DSM-5

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A term historically used to refer to people of European origin or descent; now considered broad and imprecise for describing ethnicity.