Assume That a Firm Wants to Build a Factory That

question 155

Multiple Choice

Assume that a firm wants to build a factory that will cost $5 million. It believes that it can get a return of $600,000 in one year and then can sell the used factory for its original cost. The rate of return on this investment would be:

• A) 6 percent.
• B) 12 percent.
• C) 18 percent.
• D) 30 percent.

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Definitions:

Unflattering View

An opinion or perspective that is not favorable or complimentary.

Human Reasoning

The process through which individuals draw conclusions and make decisions based on information, past experiences, and logical thinking.

Syllogism's Conclusion

The final part of a syllogism, consisting of a statement that logically follows from the two premises.

Validity

in research refers to the extent to which a tool, test, or study accurately measures what it is intended to measure.