A Project Has an Annual Rate of Return of 15

question 123

Multiple Choice

A project has an annual rate of return of 15%. The project cost $120,000, has a 5-year useful life, and no salvage value. Straight-line depreciation is used. The annual net income, exclusive of depreciation, was

• A) $42,000.
• B) $33,000.
• C) $47,700.
• D) $18,000.

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Definitions:

Detoxifies

The process by which toxic substances are removed from a living organism, including the neutralization or elimination of harmful substances from the body.

Gallbladder

A small organ located under the liver which stores bile, a fluid produced by the liver to help digest fats.

Semiliquid Food

Nutritional substances that are partially liquid, partially solid, easing consumption and digestion.

Chyme

The partially broken down food substance that transitions from the stomach to the small intestine in a semi-liquid form.