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question 97

Multiple Choice

[The following information applies to the questions displayed below.]
Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000.The machine has an estimated useful life of ten years,and an estimated salvage value of $14,000.The machine will increase the company's net income by approximately $9,600 per year.All revenue and expenses other than depreciation will be received and paid in cash.
-The expected rate of return on average investment of the machine is:

• A)10.0%.
• B)17.0%.
• C)18.6%.
• D)48.0%.

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Definitions:

Physically Entering

The act of going into a specific space or location in person, as opposed to virtually or in an abstract sense.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Greenfield Operations

Business ventures that start from scratch in a new territory or market, without any prior operations or constraints.

Consortium

A group of companies or institutions that collaborate together to undertake an enterprise or mission that is beyond the capabilities of any single member.