Big Al's is considering the purchase of a capital investment costing $33,000. Annual cash savings of $8,000, with a present value at 14 percent of $37,111, are expected for the next eight years. Given this information, which of the following statements is true?
A) This investment offers an actual rate of return of 14%.
B) This investment offers an actual rate of return of less than 14%.
C) This investment offers an actual rate of return of more than 14%.
D) This investment offers a negative rate of return.
C
You might also like to view...
Identifying the maximum price the market will accept falls under the performing stage of the management process
Indicate whether the statement is true or false
Which of the following is an advantage of an email report?
A) Is appropriate only for external audiences B) Can be distributed and received quickly C) Guarantees secured delivery to audiences D) Projects a more formal image than a letter report E) Easily supports tables and graphs
________ is a doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law
A) The common law of contracts B) The Restatement of the Law of Contracts C) Equity D) Letter of credit
Refer to Table 4-2. The Debt to Equity ratio for 2008 was approximately
A) 1.95. B) 0.51. C) 0.95. D) 2.05. E) 1.05.