Which of the Following Represents the Formula for the Annual

question 19

Multiple Choice

Which of the following represents the formula for the annual marginal rate of return (MRR) when trying to decide whether to hold or sell a property (ATCFS equals the after-tax cash flow from sale and ATCFO equals the after-tax cash flow from operations) ?

• A)MRR = (ATCFS (year t + 1)+ ATCFO (year t + 1)− ATCFS (year t)− ATCFO (year t)/ ATCFS (year t)
• B)MRR = (ATCFS (year t + 1)− ATCFO (year t + 1)+ ATCFS (year t))/ ATCFS (year t)
• C)MRR = (ATCFS (year t + 1)+ ATCFO (year t + 1)− ATCFS (year t))/ ATCFS (year t)
• D)MRR = (ATCFS (year t + 1)+ ATCFO (year t + 1)+ ATCFS (year t))/ ATCFS (year t)

---

Definitions:

Credit Request

A formal application made by an individual or business seeking to borrow money or obtain goods or services on credit.

Denying Credit

The refusal to acknowledge someone's contribution or role in achieving something.

Employment Duration

The length of time an individual is employed in a specific job or with a particular company.

Softening Bad News

This involves delivering unfavorable information in a way that minimizes upset or harm, often by framing the message with positive or neutral statements.