Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$30,000 Annual cash inflows $6,000 Salvage value of equipment$0 Life of the investment 15yearsRequired rate of return 10%The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
A. 13.3%
B. 20.0%
C. 18.0%
D. 10.0%
Answer: A
You might also like to view...
Which of the following is a general guideline that serves as a foundation for a personal code of business ethics?
A) Personal selling is a stepping stone to more legitimate careers. B) Be honest with yourself and with others. C) Tasks come first, relationships second. D) Your values should not be in conflict with those of your employer. E) Selling is about controlling the interaction and managing the relationship.
The modern workplace is being rede?ned by
A) Technology. B) Shifts in workforce demographics. C) Globalization. D) All of the above.
Long-term loan agreements always contain provisions, or covenants, that constrain the firm's future actions. Short-term credit agreements are just as restrictive in order to protect the interest of the lender.
Answer the following statement true (T) or false (F)
The remedy of ______ may be used to prevent unjust enrichment
a. restitution b. specific performance c. real performance d. fair compensation e. equal parts