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:

Wilhelm Wundt

A psychologist often regarded as the father of experimental psychology, known for establishing the first psychology laboratory.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Science

Science is the systematic study of the structure and behavior of the physical and natural world through observation and experiment.

Modern Psychologists

Psychologists who practice and contribute to the field of psychology using contemporary theories, methods, and research findings.