Which of the Following Represents the Formula for the Annual

question 19

Multiple Choice

Which of the following represents the formula for the annual marginal rate of return (MRR) when trying to decide whether to hold or sell a property (ATCFS equals the after-tax cash flow from sale and ATCFO equals the after-tax cash flow from operations) ?

• A)MRR = (ATCFS (year t + 1)+ ATCFO (year t + 1)− ATCFS (year t)− ATCFO (year t)/ ATCFS (year t)
• B)MRR = (ATCFS (year t + 1)− ATCFO (year t + 1)+ ATCFS (year t))/ ATCFS (year t)
• C)MRR = (ATCFS (year t + 1)+ ATCFO (year t + 1)− ATCFS (year t))/ ATCFS (year t)
• D)MRR = (ATCFS (year t + 1)+ ATCFO (year t + 1)+ ATCFS (year t))/ ATCFS (year t)

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Definitions:

Amoebozoa

A group of amoeboid protozoa that move and ingest food with pseudopodia, comprising various free-living and parasitic species.

Plasmodial Slime Molds

Eukaryotic organisms that exist as a single mass of cytoplasm without cell walls during part of their life cycle, feeding on microorganisms in decaying plant material.

Opisthokont

A classification category that includes both fungi and animals, characterized by posterior flagella on swimming cells.

Collared Flagellates

Single-celled organisms with a distinctive collar around their flagellum, often considered an ancestral form to sponges.