The State of Ohio Has Passed a Law Requiring That $\div$

question 92

Multiple Choice

The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control.Anson Enterprises is considering entering into this type of business.After extensive studies,Mark Anson has developed the following set of projected annual data on which to make his decision:
Anson believes that his company will inspect 100,000 automobiles per year.The company earns an average of 18.75 percent return on its assets.
-The price to be charged for inspecting each automobile using the return on assets pricing method would be calculated as

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Definitions:

Maintenance-free

Describes products or systems designed to operate without the need for regular maintenance or upkeep.

Inactivated Shelf Life

The duration for which a product or substance remains effective or safe to use after its activation has been halted or not initiated.

Internal Rate of Return

The discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Cash Flows

The sum of funds flowing in and out of a company, impacting its ability to cover short-term obligations.