(Ignore Income Taxes in This Problem -
the Simple Rate of Return on the Investment Is

question 62

Multiple Choice

(Ignore income taxes in this problem.) Chow Company has gathered the following data on a proposed investment project: $\begin{array}{lr} \text {Investment required in equipment. } &£ 142,500\\ \text {Annual cash inflows. } &£ 30,000\\ \text {Salvage value. } &£ 0 \\ \text { Life of the investment. } & \text { 8 years}\\ \text { Required rate of return. } &10 \%\\\end{array}$

-
The simple rate of return on the investment is closest to

• A)8.55%.
• B)10.00%.
• C)21.05%.
• D)33.55%.

---

Definitions:

Bad News Messages

Communications that convey unfavorable or negative information to the recipient, often requiring careful wording to maintain goodwill.

Whistle-Blowing

Efforts by employees to report concerns about unethical or illegal behavior.

Illegal Behavior

Actions or activities that violate laws or regulations.

Ethical Behavior

Acting in ways consistent with what society and individuals typically think are good values, involving honesty, fairness, and integrity.