You're Trying to Determine Whether to Expand Your Business by Building

question 19

Multiple Choice

You're trying to determine whether to expand your business by building a new manufacturing plant.The plant has an installation cost of $12 million,which will be depreciated straight-line to zero over its 4-year life.The plant has projected net income of $1,095,000,$902,000,$1,412,000,and $1,724,000 over these 4 years.What is the average accounting return?

• A)10.70 percent
• B)15.63 percent
• C)18.87 percent
• D)21.39 percent
• E)23.05 percent

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Definitions:

Disturbances in Volition

Alterations or impairments in the ability to make decisions or initiate actions willingly, often seen in psychiatric conditions such as schizophrenia.

Ambivalent

Experiencing conflicting emotions or thoughts regarding a particular situation or individual.

Disturbances in Affect

Variations from the normal range of emotions, which can include fluctuations in mood intensity and emotional stability, often observed in psychological disorders.

Social Withdrawal

The act of avoiding or reducing participation in social activities and interactions.