(Ignore Income Taxes in This Problem

question 141

Multiple Choice

(Ignore income taxes in this problem.) 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:

Base-Mediated Aldol Condensation

A reaction process that involves the use of a base to facilitate condensation between two carbonyl compounds, forming a β-hydroxy carbonyl compound or an α,β-unsaturated carbonyl compound.

Enolate

An anion formed by the deprotonation of an alpha-hydrogen of a carbonyl compound, important in many organic reactions.

Haloform Reaction

A chemical reaction where a haloform is produced by the halogenation of methyl ketones in the presence of base.

2-Pentanone

An organic compound with the formula C5H10O, a ketone with a five-carbon chain, with the carbonyl group at the second carbon.