Larry's Lanterns Is Considering a Project Which Will Produce Sales

question 83

Multiple Choice

Larry's Lanterns is considering a project which will produce sales of £240,000 a year for the next five years.The profit margin is estimated at 6% .The project will cost £290,000 and be depreciated straight-line to a book value of zero over the life of the project.Larry's has a required accounting return of 8%.This project should be _____ because the AAR is _____.

• A)rejected; 4.14%
• B)rejected; 6%
• C)rejected; 8.28%
• D)accepted; 8.28%
• E)accepted; 9.93%

Recognize the different forms of foreign direct investment and their significance.

Understand the adjustments companies make in their strategies to cater to different international markets.

Acknowledge the criticisms of multinational corporations and how they impact global inequality.

Comprehend how cultural, technological, and regional differences influence international business strategies.

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Definitions:

Academic Honesty

The practice of maintaining integrity and avoiding plagiarism or cheating in all academic endeavors.

Strict Policies

Regulations or rules that are rigorously enforced, with little flexibility, to maintain discipline or adherence.

Cheat

To act dishonestly or unfairly in order to gain an advantage, especially in a school, sports, or relationship context.

Academic Institutions

Organizations dedicated to education and research, typically involving schools, colleges, universities, and research institutes.