(Ignore Income Taxes in This Problem

question 34

Multiple Choice

(Ignore income taxes in this problem.) Friden Company has just purchased a new piece of equipment with the following characteristics:
-The simple rate of return would be approximately:

• A)22.2%
• B)12.2%
• C)11.1%
• D)10%

---

Definitions:

Blank Endorsement

A signature without any restrictions or instructions, allowing any holder of the document to execute a transaction.

Endorsed

The act of signing the back of a negotiable instrument, such as a check, thus transferring rights or title to another party.

Payee

The party in whose favor a check, draft, or note is made, entitled to receive the payment from the payer.

Drawer

The person or entity that writes a check or draft instructing the drawee to pay someone else.