Jinny's Ice Cream Is Considering Opening a New Outlet for a Period

question 203

Multiple Choice

Jinny's Ice Cream is considering opening a new outlet for a period of three years. The up-front costs are $288,000. The outlet is expected to earn net income of $31,500 a year. What is the expected
Average accounting rate of return on this venture?

• A) 14.93%
• B) 21.88%
• C) 31.25%
• D) 38.76%
• E) 43.75%

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Definitions:

Gatekeeper

A gatekeeper is an individual or entity that controls access to something, often information or resources, making critical decisions about who gets access.

Receptionist

A person employed in an office or administrative support role to manage front-desk tasks such as answering phone calls and welcoming visitors.

Buying Center

A team within a company that participates in the decision-making process for a purchase.

Gatekeeper

An individual or entity that controls access to something, often referring to decision-makers in businesses who control the flow of information or access to resources.