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

question 50

Multiple Choice

A company is evaluating three possible investments.Each uses the straight-line method of depreciation.Following information is provided by the company: $\begin{array} { | l | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Investment } & \$ 230,000 & \$ 54,000 & \$ 230,000 \\\hline \text { Residual value } & 0 & 12,000 & 36,000 \\\hline \text { Net cash inflows: } & & & \\\hline \text { Year 1 } & 56,000 & 38,000 & 94,000 \\\hline \text { Year 2 } & 56,000 & 29,000 & 64,000 \\\hline \text { Year 3 } & 56,000 & 25,000 & 74,000 \\\hline \text { Year 4 } & 56,000 & 22,000 & 34,000 \\\hline \text { Year 5 } & 56,000 & 0 & 0 \\\hline\end{array}$ What is the accounting rate of return for Project B? (Round your answer to two decimal places.)

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Definitions:

Social Cohesion

Refers to the strength of relationships and the sense of solidarity among members of a community, contributing to its unity and mutual support.

Social Solidarity

The feelings of fellowship and unity among members of a society, which bind people together and facilitate cooperation and support.

Beliefs and Values

Fundamental convictions and principles that guide behavior, shape perspectives, and inform ethical and moral judgments.

Social Experiences

The interactions and relationships an individual has within society, significantly influencing their perceptions, attitudes, and behaviors.