You Should Accept Project _____ Because It Has the _____

question 268

Multiple Choice

You should accept Project _____ because it has the _____ average accounting return.

• A) A; higher
• B) A; lower
• C) B; higher
• D) B; lower
• E) The average accounting return cannot be used to determine which of these projects should be accepted.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which may differ from its market value.

Installments

Regular payments made over a period of time to pay off a debt.

Stock Subscription Plan

A financing agreement allowing investors to subscribe to a new issue of stocks, often with payment and delivery at a later date.

Par Value

Par value is the nominal or face value of a bond, share of stock, or other financial instruments, as stated by the issuing company.