A Project Produces Annual Net Income of £9,500, £12,500, and £15,500

question 10

Multiple Choice

A project produces annual net income of £9,500, £12,500, and £15,500 over the three years of its life, respectively.The initial cost of the project is £260,400.This cost is depreciated straight-line to a
Zero book value over three years.What is the average accounting rate of return if the required
Discount rate is 7%?

• A)4.80%
• B)7.32%
• C)8.97%
• D)9.60%
• E)10.27%

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Definitions:

Nodes of Ranvier

Gaps in the myelin sheath of a nerve fiber where the axon is exposed, allowing for the rapid transmission of nerve impulses through saltatory conduction.

Internodes

Sections of a plant stem between two nodes, where leaves and branches are attached.

Glial Cells

Non-neuronal cells in the central and peripheral nervous systems that provide support and protection for neurons.

Choroid Plexus

A network of blood vessels in each ventricle of the brain, involved in the production of cerebrospinal fluid.