A Project Produces Annual Net Income of $10,500,$15,700,and $16,200 Over

question 46

Multiple Choice

A project produces annual net income of $10,500,$15,700,and $16,200 over its 3-year life and requires an initial investment in fixed assets of $210,000.The book value of these assets will be $140,007,$46,662,and $15,561 at the end of Years 1 to 3,respectively.What is the average accounting rate of return if the required discount rate is 14.5 percent?

• A)13.46%
• B)14.32%
• C)13.98%
• D)13.71%
• E)14.62%

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Definitions:

Research Hypothesis

A specific, testable prediction about what you expect to happen in your study.

Hiring Preferences

The inclinations or biases employers have towards certain characteristics, qualifications, or traits of applicants when making hiring decisions.

Veterans

Individuals who have served in the military, especially those who have served in combat.

Null Hypothesis

In statistical analysis, the hypothesis that there is no effect or no difference, and any observed difference is due to sampling or experimental error.