Q 75

-Refer to the Figure.What is the accounting rate of return for the investment?
A) 2.5%
B) 10.0%
C) 12.5%
D) 20.0%

Q 77

-Refer to the Figure.Coriander Company is considering a project with an initial investment of $426,800 in new equipment that will yield annual net cash flows of $80,000 and will be depreciated at $53,350 per year over its eight-year life.What is the internal rate of return?
A) 6%
B) 8%
C) 10%
D) 12%

Q 78

-Refer to the Figure.Galway Company is considering a project with an initial investment of $124,450 that will yield annual net cash flows of $32,000 and will be depreciated at $20,742 per year over its six-year life.What is the internal rate of return?
A) 6%
B) 8%
C) 10%
D) 14%