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The Budget Place Is Considering Opening a New Store at a Start

Question 67

Multiple Choice

The Budget Place is considering opening a new store at a start up cost of $700,000. The initial investment will be depreciated straight line to zero over the 15-year life of the project. What is the average accounting rate of return? The Budget Place is considering opening a new store at a start up cost of $700,000. The initial investment will be depreciated straight line to zero over the 15-year life of the project. What is the average accounting rate of return? A) 13.05 percent B) 13.68 percent C) 14.01 percent D) 14.59 percent E) 14.76 percent


A) 13.05 percent
B) 13.68 percent
C) 14.01 percent
D) 14.59 percent
E) 14.76 percent

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