*** PLEASE ANSWER ALL QUESTIONS :) ***

1.)

Ray Retail is considering an investment in a delivery truck. Ray has found a used truck that he can purchase for $8,000. He estimates the truck would last six years and increase his store's net cash revenues by $2,000 per year. At the end of six years, the truck would have no salvage value and would be discarded. Ray will depreciate the truck using the straight-line method. Refer to Ray Retail. What is the accounting rate of return on the truck investment (based on average profit and average investment)? Select one:

a. 50.0%

b. 16.7%

c. 8.3%

d. 25.0%

2.)

All other things being equal, as the time period for receiving an annuity lengthens,

Select one:

a. the related present value factors decrease

b. the related present value factors remain constant

c. it is impossible to tell what happens to present value factors from the information given

d. the related present value factors increase

3.)

The capital budgeting technique known as accounting rate of return uses Select one