A Project That Cost $80,000 with a Useful Life of 5

question 28

Multiple Choice

A project that cost $80,000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5,000. The project will generate annual cash flows of $21,375. The annual rate of return is

• A) 15%.
• B) 50.3%.
• C) 16%.
• D) 17%.

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Definitions:

Performance Evaluation Bias

The presence of subjective judgments or prejudices that unfairly influence the assessment of an employee's performance.

Frame-Of-Reference Training

A training method that helps individuals understand and evaluate their performance or behaviors using a common standard or perspective.

Categorization Skills

The ability to organize, sort, and classify objects, information, or ideas into predefined categories based on set criteria.

General Goals

Broad objectives that an individual or organization aims to achieve, typically lacking specific details.