Henkle Company Is Considering a Project with an Initial Investment

question 150

Multiple Choice

Henkle Company is considering a project with an initial investment of $626,500 in new equipment that will yield annual net cash flows of $90,000 and will be depreciated at $55,000 per year over its nine-year life.What is the accounting rate of return?

• A)5.59%
• B)18.74%
• C)31.27%
• D)50.0%

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Definitions:

Intrinsic Reasons

Motivations that come from within an individual, such as personal satisfaction or enjoyment.

Careers

The progression and actions an individual takes over their working life in one or multiple professions.

Employment

The condition of having paid work or the act of hiring someone to perform a job.

Realistic Choice Stage

A phase in career development where individuals evaluate and narrow down career options based on personal and external realities.