The Following Data Concerns a Proposed Equipment Purchase Assuming That Net Cash Flows Are Received Evenly Throughout the Cost

question 18

Multiple Choice

The following data concerns a proposed equipment purchase: $\begin{array}{lr}\text { Cost } & \$ 144,000 \\\text { Salvage value } & \$ 4,000 \\\text { Estimated useful life } & 4 \text { years } \\\text { Annual net cash flows } & \$ 46,100 \\\text { Depreciation method } & \text { Straight-line }\end{array}$ Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is:

• A)62.3%
• B)32.0%
• C)15.0%
• D)7.7%
• E)5.0%

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Definitions:

Conative Function

One of Jakobson’s semiotic functions. Establishes the sender’s expectations of the receiver or what the receiver is expected to do as a result of receiving the message.

Sender's Expectations

Sender's expectations refer to the anticipations or assumptions held by the initiator of a communication about how the message will be received and understood by others.

Qualitative Analyses

Non-numerical examination and interpretation of observations, for the purpose of discovering underlying meanings and patterns of relationships.

Documented Interaction

An interaction between individuals or groups that has been recorded or written down for evidence or reference.