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:

Empirical Work

Research that relies on actual experience or observation rather than theory or pure logic, often involving the collection and analysis of data.

Productivity

An indicator of production effectiveness, typically shown as the proportion of outputs versus inputs in the manufacturing process.

Wage Differentials

The variation in pay rates between different sectors, roles, or geographical locations, often influenced by skill levels, supply and demand, and living costs.

Discrimination

Unfair treatment or prejudice against individuals or groups based on characteristics such as race, gender, or age.