COMM 308 Midterm: COMM308PracticeTest.docx
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Select al (ctrl+a)l and change font color to black to reveal them. I c e q u e s ti. # 2 pract: you are considering the following two mutually exclusive projects. The required rate of return is 14. 6 percent for project a and. The initial cost of the project is ,000 which will be depreciated using straight-line depreciation to a book value of zero over the life of the project. The firm wants to earn a minimum average accounting return of 11. 5 percent. The firm should the project because the aar is percent. accept; 5. 71 accept; 9. 90 accept; 12. 04 x reject; 5. 71 reject; 12. 04: a project has average net income of ,900 a year over its 6-year life. The initial cost of the project is ,000 which will be depreciated using 3. Bleakly enterprises has a capital structure of 40 percent common stock, 10 percent preferred stock, and 50 percent debt.
