LaGrange Corp

question 64

Multiple Choice

LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,731. The average book value of the manufacturing equipment that is used is $167,095. What is the accounting rate of return? (Round your answer to one decimal place.)

• A) 33.3%
• B) 27.4%
• C) 29.8%
• D) 22.3%

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Definitions:

Null Hypotheses

A statement or hypothesis set for statistical testing, positing that there is no significant difference or effect.

Alternative Hypotheses

In hypothesis testing, it is the statement that suggests a possible relationship between variables or a difference in groups, contrasting the null hypothesis.

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Energy Drink

A type of beverage containing stimulant compounds, typically caffeine, which is marketed as providing mental and physical stimulation.