Cheryl Peck Purchased a Computer Network for Her Classroom

question 64

Multiple Choice

Cheryl Peck purchased a computer network for her classroom. The computer network cost $100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 12 percent, what is her accounting rate of return?

• A) 33.87%
• B) 78.33%
• C) 64.87%
• D) 46.88%

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Definitions:

Proportional Plus Derivative

A control method in feedback system design that uses a combination of the proportional and derivative actions to improve system response and stability.

PID

Proportional-Integral-Derivative closed-loop control that lets the user hold a process variable at a desired set-point.

Thermistor

A type of resistor whose resistance varies significantly with temperature, widely used as temperature sensors.