Sanad Company is planning to purchase a non-current asset with a useful economic life of ten years for OMR 1,250,000. It is expected to generate cash flows over the ten-year period of OMR 250,000 per annum before depreciation. The company charges depreciation over the life of the asset on a straight-line basis. At the end of the period it will be sold for OMR 250,000. What is the accounting rate of return for the investment?

a-25% b-15% c-20% d- 33%

Lamees Company is an international manufacturer of womens perfumes. Management at Lamees is considering the addition of a new product line for mens perfumes. This is an example of:

a-Contingent project

b-Diversification decision

c-Expansion decision

d-Replacement decision