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:

Inattention

The lack of focus or paying attention, often evident in various contexts such as learning environments, leading to difficulties in completing tasks.

Impulsiveness

A tendency to act on urges and desires without considering the long-term consequences, often leading to hasty or risky decisions.

Obesity

A medical condition involving excess body fat that increases the risk of health problems.

Middle Childhood

A developmental stage that generally covers children from about 6 to 12 years old, characterized by significant cognitive, emotional, and social growth.