Brandon Company Is Contemplating the Purchase of a New Piece

question 145

Multiple Choice

Brandon Company is contemplating the purchase of a new piece of equipment for $45,000. Brandon is in the 30% income tax bracket. Predicted annual after-tax cash inflows from this investment are $18,000, $15,000, $9,000, $6,000 and $3,000 for years 1 through 5, respectively. The firm uses straight-line depreciation with no residual value at the end of five years.

The hurdle rate for accepting new capital investment projects is 4%, after-tax. The estimated accounting rate of return (ARR) on this project (rounded to two decimal points) , based on the initial investment is:

• A) 2.67%.
• B) 3.33%.
• C) 6.67%.
• D) 10.00%.
• E) 12.00%.

Learn how arrays are passed to methods and manipulated within them.

Comprehend the initialization values of array components upon instantiation.

Understand the structure and processing of two-dimensional arrays in Java.

Recognize that arrays can store only components of a consistent data type.

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Definitions:

Symptoms

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An individual's or group's social and economic position relative to others, based on income, education, and occupation.

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A research method in psychology that compares the similarities between adopted children and their adoptive and biological parents to understand genetic and environmental influences.

Shared Environment

Aspects of an individual's environment that are experienced in common with others, such as family living conditions, which can influence their development.