What Is the Accounting Rate of Return for a Project

question 16

Multiple Choice

What is the accounting rate of return for a project that requires an initial outlay of $15 000 and has the expectation of future earnings of $4000 p.a.for the next five years? Assume the required rate of return is 8% p.a.

• A)1.333
• B)$970.80
• C)1.0647
• D)1.564

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Definitions:

Split-phase Motors

A type of single-phase induction motor that uses a secondary start winding or auxiliary winding offset by electrical degrees to create a phase shift, helping to start the motor.

Pulsating Magnetic Field

A magnetic field that varies in amplitude over time in a periodic manner.

Rotating

The action or process of turning around a center or an axis; a fundamental movement in various mechanical and electrical devices.

Fixed

Pertains to an electronic component or value that remains constant and unchanged throughout its operation or use.