-A Project Produces Annual Net Income of $46,200,$51,800,and $62,900 Over

question 67

Multiple Choice

-A project produces annual net income of $46,200,$51,800,and $62,900 over its 3-year life,respectively.The initial cost of the project is $675,000.This cost is depreciated straight-line to a zero book value over three years.What is the average accounting rate of return if the required discount rate is 14.5 percent?

• A) 15.89 percent
• B) 16.67 percent
• C) 18.98 percent
• D) 20.25 percent
• E) 23.84 percent

Comprehend the two-factor theory of Herzberg and its distinction between hygiene and satisfier factors in relation to job satisfaction and motivation.

Recognize the significance of power and affiliation in managerial roles and leadership as per McClelland and Herzberg's theories.

Understand the principles of ERG theory and how it modifies Maslow's hierarchy of needs in the context of frustration-regression.

Grasp the concepts of equity theory, including how perceptions of inequity can impact work behavior and efforts to restore equity.

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Definitions:

Indirect Method

A cash flow statement preparation approach that adjusts net income for non-cash transactions and changes in working capital to calculate operating cash flow.

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and equity at two or more points in time, allowing for comparison and trend analysis.

Operating Activities

Operating activities include the primary revenue-generating activities of a business, as well as other activities that are not investing or financing activities, reflecting the company's core operations cash flow.

Comparative Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and equity at two or more points in time for comparison.