Latimer Corporation Is Considering Two Alternative Investment Proposals with the Following

question 128

Multiple Choice

Latimer Corporation is considering two alternative investment proposals with the following data: $\begin{array}{|l|r|r|}\hline & \text { Proposal X } & \text { Proposal Y } \\\hline \text { Investment } & \$ 812,500 & \$ 390,000 \\\hline \text { Useful life } & 8 \text { years } & 8 \text { years } \\\hline \begin{array}{l}\text { Estimated annual net } \\\text { cash inflows for 8 years }\end{array} & \$ 125,000 & \$ 78,000 \\\hline \text { Residual value } & \$ 40,000 & \$ \\\hline \text { Depreciation method } & \text { Straight-line } & \text { Straight-line } \\\hline \text { Required rate of return } & 14 \% & 10 \% \\\hline\end{array}$

- What is the accounting rate of return for Proposal X?

• A)3.50 %
• B)4.22 %
• C)15.38 %
• D)27.27 %

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Definitions:

Sexual Seclusion

The practice of isolating oneself or being isolated by others due to sexual reasons or activities.

Circumcised

Describes a male who has undergone the surgical removal of the foreskin covering the tip of the penis.

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Engaging in actions or tasks that are identical or very similar to one another.

Sexually Active

Engaging in sexual behavior or activities, often implying the potential risk for sexually transmitted infections (STIs) or pregnancy.