A Plant Asset of $270,000 Is Expected to Generate $180,000

question 92

Multiple Choice

A plant asset of $270,000 is expected to generate $180,000 in operating cash savings (excluding depreciation expense) annually for three years.Assume straight-line depreciation is used.The useful life is three years.The asset has no expected residual value.Ignore income taxes.The accounting rate of return based on the average investment is ________.

• A) 11.11%
• B) 33.33%
• C) 44.44%
• D) 66.67%

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Definitions:

Vector

A dynamic array that can grow or shrink in size in programming languages like Java.

Int[]

Denotes an array of integers in programming, which is a data structure capable of storing multiple integer values in a single variable.

Array

A collection of elements, typically of the same type, stored in contiguous memory locations and accessible via indexing.

Vector

In Java, a synchronized dynamic array that provides methods to dynamically store and access data.