An Investment of $4,000 Provides an Average Net Cash Flow

question 54

Multiple Choice

An investment of $4,000 provides an average net cash flow of $960 with zero salvage value. Depreciation is $80 per year. What is the accounting rate of return using the original investment?

• A) 20%
• B) 22%
• C) 24%
• D) 40%

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Definitions:

Purpose

The reason for which something is done or created or for which something exists.

Arrangement of Views

The organized layout of different perspectives of an object (top, front, side views) in technical drawing to provide comprehensive detail.

Important Aspects

Key elements or factors that are of significant importance or relevance to the understanding or success of a topic or project.