A Firm Has an Average Investment of $10,000 During the Year.During

question 16

Multiple Choice

A firm has an average investment of $10,000 during the year.During the same period,the firm generates after-tax income of $1,000.
If the cost of capital is 15%,what is the net return on the investment?

• A)15%
• B)-5%
• C)10%
• D)5%

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Definitions:

Empirical Testing

The method of using observation and experiment to test hypotheses and theories, often employed in the scientific method.

Thematic Apperception Test (TAT)

A projective psychological test that involves creating stories about ambiguous scenes, used to explore a person's emotions, drives, and needs.

Recurs

Something that occurs again, either periodically or sporadically.

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number, which is the number of protons in its nucleus.