The answer to this question is true.
Answer:
b. No, the return is less than the required rate of 9%
Explanation:
Projected sale = 100000
Projected exp = 86000
Profit = 14000
Assets= 200000
Return on assets = 14000/200000 = 7%
Expected return = 9%
Hence, project should not be taken
Answer:
The correct answer is Habitual Practice
Explanation:
Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.
