Assume a Project Has an Initial Cost of $48,000 and Will

question 66

Multiple Choice

Assume a project has an initial cost of $48,000 and will produce net income for 5 years.The project will use straight-line depreciation over the life of the project.The AAR of this project can be computed as

• A)(Sum of all net income / 5)/ ($48,000 / 2)
• B)(Sum of all net income / 2)/ ($48,000 / 2)
• C)($48,000 / 5)/ (Sum of all net income / 5)
• D)($48,000 / 2)/ (Sum of all net income / 2)
• E)(Sum of all net income / 5)/ $48,000

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Definitions:

Parietal Bone

A bone forming the central side and upper back part of each side of the skull.

Temporal Bone

A complex bone located at the sides and base of the skull, housing the structures of the ear and forming part of the side walls of the skull.

Frontal Bone

The bone forming the front part of the skull and the upper part of the eye sockets.

Forehead

The part of the human face above the eyebrows and below the hairline, associated with the frontal bone of the skull.