Buster Evans Is Considering Investing $20,000 in a Project with the Following

question 17

Multiple Choice

Buster Evans is considering investing $20,000 in a project with the following annual cash revenues and expenses: Depreciation will be $4,000 per year.
What is the accounting rate of return on the investment?

• A) 15%
• B) 35%
• C) 70%
• D) 75%
• E) None of these.

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Definitions:

Progressive Insurance

An insurance company that offers policies for vehicles, property, and other personal assets, known for offering customized coverage options.

Driving Patterns

The behaviors and habits of drivers, including speed, routes taken, and times of travel, which can impact fuel consumption, traffic flow, and road safety.

Safety Equipment

Tools and devices designed to protect individuals from injury or harm, especially in workplaces.

Expected Loss

The anticipated amount of loss a party might suffer in an investment or venture, taking into account the likelihood of various outcomes.