Chee Corporation has gathered the following data on a proposed investment project: The company uses straight-line depreciation.Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment is closest to:
A)12.5%
B)10.0%
C)20.8%
D)8.3%

Question

Chee Corporation has gathered the following data on a proposed investment project:  The company uses straight-line depreciation.Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment is closest to:
A)12.5% 
B)10.0% 
C)20.8% 
D)8.3%

Quizplus · Accepted Answer

The Answer of Chee Corporation has gathered the following data on a proposed investment project:  The company uses straight-line depreciation.Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment is closest to:
A)12.5% 
B)10.0% 
C)20.8% 
D)8.3%

Chee Corporation Has Gathered the Following Data on a Proposed