If a 1-Year Project Costs $100 000 and Is Expected

question 154

Multiple Choice

If a 1-year project costs $100 000 and is expected to return the firm $105 000,the rate of return of the project is:

• A) 4.8%.
• B) 5%.
• C) $5 000.
• D) $105 000.

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Definitions:

Creditor's Debt

An obligation owed by a debtor to a creditor, typically involving the repayment of borrowed money with interest.

Automatically Perfected

A status achieved by security interests in certain types of property upon attachment, without further legal action or filing required.

Financing Statement

A document filed by a creditor to give public notice that it has or may have an interest in the personal property of a debtor (usually in connection with a secured transaction).

Consumer Good

A commodity or a product that is produced and purchased to satisfy the personal needs or wants of the consumer.