Use the Following Information for Questions

question 51

Multiple Choice

Use the following information for questions
A company projects an increase in net income of $40,000 each year for the next five years if it invests $500,000 in new equipment.The equipment has a five-year life and an estimated salvage value of $50,000.The company uses the straight-line method of depreciation.
-What is the annual rate of return?

• A)8%
• B)14.5%
• C)18%
• D)26.7%

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Definitions:

U.S. Constitution

The supreme law of the United States, established in 1787, outlining the nation's fundamental laws and principles, and the structure of its government.

Special-Interest Group

A group formed to advocate for specific interests or issues within a political, economic, or social context.

Margaret Sanger

An American birth control activist, sex educator, and nurse who popularized the term "birth control" and opened the first birth control clinic in the United States.

American Birth Control League

Established by Margaret Sanger in 1921, this organization advocated for birth control and reproductive rights, eventually evolving into Planned Parenthood.