Which of the following set of calculations must be erroneous if the required rate of return is 12%?
A)Project C
B)Project A
C)Project B
D)Project D

Question

Which of the following set of calculations must be erroneous if the required rate of return is 12%? 
A)Project C 
B)Project A 
C)Project B 
D)Project D

Quizplus · Accepted Answer

Since the required rate of return is 12%, the calculation that results in a rate of return higher than 12% must be erroneous. In the case of Project C, the calculated rate of return is 20%, which is higher than the required rate of return, indicating errors in the calculation. Therefore, Project C must be the erroneous set of calculations. Projects A, B, and D do not have a rate of return greater than 12%.

Which of the Following Set of Calculations Must Be Erroneous