If a Project Has an Expected Life of Three Years,requires

question 19

Multiple Choice

If a project has an expected life of three years,requires an initial outlay of $5000,has a net present value of $2205.40 and an accounting rate of return of 40%,and promises a uniform cash flow over its life,how much depreciation is being deducted on an annual basis if the required rate of return is 12% p.a.?

• A)$800
• B)$1000
• C)$550
• D)$430

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Definitions:

Comparable Worth

A principle asserting that jobs should be paid based on the level of skill, effort, responsibility, and working conditions, regardless of the job holder's gender or other unrelated factors.

Affirmative Action

Policies or measures aimed at increasing the opportunities for minorities and disadvantaged groups in various areas such as employment and education.

Merit Pay

Pay increases awarded in proportion to performance contributions.

Equality Principle

The ethical or ideological principle that individuals should be treated equally, with the same rights, opportunities, and respect, regardless of their differences.