Carmino Company Is Considering an Investment in Equipment That Is $\begin{array}{lr}\text { Year 1 } & \$30,000 \\\text { Year 2 } & 15,000 \\\text { Year 3 } & 7,500 \\\text { Year 4 } & 3,750\end{array}$

question 32

Multiple Choice

Carmino Company is considering an investment in equipment that is expected to generate an after-tax income of $6,000 for each year of its four-year life. The asset has no salvage value. The firm is in the 40% tax bracket. The net book value (NBV) of the investment at the beginning of each year is expected to be as follows: $\begin{array}{lr}\text { Year 1 } & \$30,000 \\\text { Year 2 } & 15,000 \\\text { Year 3 } & 7,500 \\\text { Year 4 } & 3,750\end{array}$ Calculate this asset's accounting (book) rate of return (ARR) on average investment (which is defined as a simple average of the average book value of the asset for each year of its four-year life) . Round the final answer to the nearest whole %.

• A) 15%.
• B) 27%.
• C) 36%.
• D) 43%.
• E) 58%.

Understand the key components and services of the Internet.

Recognize the importance and function of Internet protocols.

Identify different forms of digital communication and their purposes.

Distinguish between various types of e-commerce.

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Definitions:

Real Attitude Change

Real attitude change refers to a genuine shift in a person's beliefs, feelings, or positions on a particular issue, resulting from persuasion, new information, or reevaluation of existing information.

Counterinfluence

Methods or strategies used to combat or reduce the effect of influence attempts by others.

Assertiveness

The quality of being self-assured and confident without being aggressive, in order to express one's opinions and needs directly.

Determination

A quality of persistently pursuing one's goals despite challenges.