Exhibit 1A -Refer to Exhibit 1A

question 5

Multiple Choice

Exhibit 1A.1
$$\begin{array} { c c } \text { Probability } & \text { Rate of Return } \\\hline .15 & - .10 \\.15 & - .20 \\.35 & .00 \\.25 & .15 \\.10 & .15\end{array}$$
-Refer to Exhibit 1A.1.The expected return from this investment is

• A) -0.0752
• B) -0.0040
• C) 0.00
• D) 0.0075
• E) 0.4545

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Definitions:

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method over its useful life.

Useful Life

The expected time period over which an asset is useful to the owner.

Double-declining-balance

An accelerated method of depreciation which double the rate of normal depreciation, reducing the value of assets more quickly.

Depreciation Expense

The yearly allocation of the cost of an asset over its useful life, reflecting the asset's usage and wear and tear over time.