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

question 44

Multiple Choice

A company is evaluating three possible investments.Each uses the straight-line method of depreciation.The following information is provided by the company: $$\begin{array} { | l | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Investment } & \$ 240,000 & \$ 54,000 & \$ 240,000 \\\hline \text { Residual value } & 0 & 10,000 & 36,000 \\\hline \text { Net cash flows: } & & & \\\hline \text { Year 1 } & 52,000 & 40,000 & 96,000 \\\hline \text { Year 2 } & 52,000 & 31,000 & 66,000 \\\hline \text { Year 3 } & 52,000 & 27,000 & 76,000 \\\hline \text { Year 4 } & 52,000 & 24,000 & 36,000 \\\hline \text { Year 5 } & 52,000 & 0 & 0 \\\hline\end{array}$$ What is the accounting rate of return for Project C? (Round your answer to two decimal places. )

• A)12.50%
• B)12.68%
• C)44.44%
• D)15.00%

---

Definitions:

False Imprisonment

The unlawful restraint of a person against their will by someone claiming lawful authority.

Bilateral Wrist Restraints

Devices applied to both wrists to restrict movement and prevent self-harm or harm to others, typically used in healthcare settings.

Quasi-intentional Tort

A legal term describing actions that have outcomes not intended by the doer, such as in cases of negligence, where harm results from a lack of intention to cause harm.

State Board of Nursing

A regulatory body responsible for licensing nurses and setting nursing practice standards within a specific state to ensure quality and competent nursing care.