Nguyen Company Has an Opportunity to Purchase an Asset That

question 6

Multiple Choice

Nguyen Company has an opportunity to purchase an asset that will cost the company $36,000.The asset is expected to add $12,000 per year to the company's net income.Assuming the asset has a five-year useful life and zero salvage value,the unadjusted rate of return based on the average investment will be:

• A) 66.67%.
• B) 33%.
• C) 15%.
• D) None of these answers are correct.

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Definitions:

Original Jurisdiction

The authority of a court to hear a case for the first time, as opposed to appellate jurisdiction.

Stare Decisis

The legal principle of determining points in litigation according to precedent.

Writ of Certiorari

An order by a higher court directing a lower court to deliver the records of a case for review, often used by the Supreme Court to choose the cases it will hear.

District Courts

The general trial courts in the United States federal court system where civil and criminal cases are filed and heard.