A Company Is Evaluating Three Possible Investments What Is the Accounting Rate of Return for Project B

question 43

Multiple Choice

A company is evaluating three possible investments.Each uses the straight-line method of depreciation.Following information is provided by the company: $$\begin{array} { | l | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Investment } & \$ 230,000 & \$ 54,000 & \$ 230,000 \\\hline \text { Residual value } & 0 & 12,000 & 36,000 \\\hline \text { Net cash inflows: } & & & \\\hline \text { Year 1 } & 56,000 & 38,000 & 94,000 \\\hline \text { Year 2 } & 56,000 & 29,000 & 64,000 \\\hline \text { Year 3 } & 56,000 & 25,000 & 74,000 \\\hline \text { Year 4 } & 56,000 & 22,000 & 34,000 \\\hline \text { Year 5 } & 56,000 & 0 & 0 \\\hline\end{array}$$ What is the accounting rate of return for Project B? (Round your answer to two decimal places.)

• A)38.14%
• B)26.19%
• C)54.55%
• D)51.83%

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Definitions:

Sexual Meaning

The significance or interpretation attributed to a sexual act, behavior, or symbol within a cultural, personal, or relational context.

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Living organisms of the kingdom Plantae, typically growing in a permanent site, absorbing water and inorganic substances through their roots, and synthesizing nutrients in their leaves by photosynthesis.

Linguistic Sexism

Refers to the way language reflects or promotes gender inequality, often through the use of gender-biased terms or expressions.