[The Following Information Applies to the Questions Displayed Below

question 89

Multiple Choice

[The following information applies to the questions displayed below.]
Newport Corporation is considering investing $65,000 in equipment to produce a new product.The useful service life of the equipment is estimated to be ten years,with no salvage value.Straight-line depreciation is used.The company estimates that production and sale of the new product will increase net income by $6,500 per year.
-The expected rate of return on average investment in this equipment is:

• A)15%.
• B)20%.
• C)7.5%.
• D)Some other percentage.

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Definitions:

Aphasia

Impaired ability to produce and comprehend language.

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A class of disorders characterized by primary clinical deficits in cognitive functioning that significantly affect daily living.

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A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and eventual loss of ability to perform everyday activities.

Major Neurocognitive Disorder

A brain disorder characterized by a deteriorating course of deficits in neurocognitive functioning (e.g., memory, attention) that interferes significantly with independent living.