The Bondi Pizza Palace Is Considering Opening a New Store

question 10

Multiple Choice

The Bondi Pizza Palace is considering opening a new store at a start-up cost of $700 000.The initial investment will be depreciated straight line to zero over the 15-year life of the project.Based on the income projections shown below what is the average accounting rate of return?

• A)13.05 per cent
• B)13.68 per cent
• C)14.01 per cent
• D)14.59 per cent
• E)14.76 per cent

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Numerical Estimate

A quantified approximation or prediction about a certain quantity or outcome.

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