An Expansion at Fidell, Inc

question 111

Multiple Choice

An expansion at Fidell, Inc., would increase sales revenues by $75,000 per year and cash operating expenses by $38,000 per year. The initial investment would be for equipment that would cost $135,000 and have a 5 year life with no salvage value. The annual depreciation on the equipment would be $27,000. The simple rate of return on the investment is closest to:

• A)20.0%
• B)7.4%
• C)27.4%
• D)13.3%

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Definitions:

Motor Neuron

A type of nerve cell responsible for sending signals from the brain and spinal cord to muscles, triggering movement.

Cerebral Cortex

The outer layer of the cerebrum, involved in complex brain functions such as thought, memory, and sensory processing.

Effector

A part of the body, such as a muscle or gland, that becomes active in response to nerve impulses.

Integration Center

In physiology, refers to regions within the central nervous system that process and interpret sensory information to formulate a response.