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:

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Matter

Matter is a substance that occupies physical space and possesses mass, including solids, liquids, gases, and plasma.

Frontal

Pertaining to the forehead or the front part of the brain associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving.

Anterior and Posterior

These terms are used to describe the front (anterior) and back (posterior) parts of the body in anatomical language.