An Initial Investment of $270,000 Is Expected to Generate $120,000

question 154

Multiple Choice

An initial investment of $270,000 is expected to generate $120,000 in annual cost savings over the asset's expected 3- year life. Assume straight- line depreciation and ignore income taxes. The accounting rate of return based on initial investment is:

• A) 33.33%
• B) 11.11%
• C) 44.44%
• D) None of these answers is correct.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, often focusing on environmental, economic, and social impact.

Corporate Social Responsibility

The commitment of a business to contribute to sustainable economic development and improve the quality of life of the workforce, their families, the community, and society at large.

CEO Activism

The efforts of chief executive officers to influence public policy and social issues outside of their companies' immediate business interests.

Reputation

The general perception or opinion that the public holds about an individual, organization, or brand, often influenced by past actions and media portrayal.