Nylan Tiles Company Is Considering an Investment in New Equipment

question 13

Multiple Choice

Nylan Tiles Company is considering an investment in new equipment costing $850,000.The equipment will be depreciated on a straight-line basis over a five-year life and is expected to have a salvage value of $50,000.The equipment is expected to generate net cash inflows of $1,000,000 in total during the five-year life.What is the accounting rate of return associated with the equipment investment?

• A)9.99%
• B)8.89%
• C)7.56%
• D)9.32%

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Definitions:

Unconditional Positive Regard

A concept in humanistic psychology emphasizing the acceptance and support of a person regardless of what they say or do, originally introduced by Carl Rogers.

Client-Centered Therapy

A form of psychotherapy developed by Carl Rogers, focusing on providing a supportive environment that encourages self-discovery and self-acceptance.

Aversive Conditioning

A behavioral training method where undesirable behaviors are associated with unpleasant stimuli to reduce the behaviors.

Prefrontal Lobotomy

The severing or destruction of a section of the frontal lobe of the brain.