A Company Projects an Increase in Net Income of $135,000

question 11

Multiple Choice

A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment?

• A) 15.0%
• B) 22.5%
• C) 30.0%
• D) 34.5%

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Definitions:

Implicit Racial Bias

Unconscious associations and attitudes towards different racial groups that influence behavior and decisions without conscious awareness.

Derogatory Language

Language that is disrespectful or insults others, often indicative of prejudice or discrimination.

Racial Minorities

Groups of people who have different physical characteristics, such as skin color, from the majority population in a society.

Women's Health Care

Medical care that focuses on the treatment and prevention of diseases and conditions affecting women and their reproductive health.