Use the Information Below to Answer the Following Question(s)

question 66

Multiple Choice

Use the information below to answer the following question(s) .Jupiter Ltd.wants to automate one of its production processes.The new equipment will cost $90,000.In addition, Jupiter will incur installation and testing costs of $5,000 and $4,500 respectively.The expected life of the equipment is 5 years and the salvage value of the equipment is estimated at $12,000.The annual cash savings are estimated at $29,000.The company uses straight-line depreciation and has a required rate of return of 9%.Ignore income taxes.
-What is the accrual accounting rate of return for the investment Jupiter Ltd.is considering?

• A)14.2%
• B)11.6%
• C)9.5%
• D)14.9%
• E)11.0%

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Definitions:

Audience Analysis

The process of examining and understanding the characteristics, expectations, needs, and preferences of the intended recipients of a message or presentation.

Eye Contact

The act of looking directly into another person's eyes, which can communicate confidence, truthfulness, or attentiveness.

Main Points

The most important or central ideas of a discussion or argument.

Capture Listeners' Attention

The act of engaging and holding the interest of an audience through verbal or non-verbal methods during a presentation or speech.