An Asset of $270,000 Is Expected to Generate $180,000 in Operating

question 1

Multiple Choice

An asset of $270,000 is expected to generate $180,000 in operating income annually for three years.Assume straight-line depreciation is used.The asset has no expected residual value.Ignore income taxes.The accounting rate of return based on the initial investment is ________.

• A)11.11%
• B)33.33%
• C)44.44%
• D)50.00%

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Definitions:

Increase in Income

A situation where an individual or entity experiences a rise in their earnings or revenue over a period.

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Electronic games involving interaction with a user interface to generate visual feedback on a video device.

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Digital versions of books that can be read on electronic devices such as e-readers, tablets, or computers.

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Goods that are consumed together because the use of one enhances the use of the other.