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Frank Company, Which Has Total Assets of $300,000, Has an Opportunity

Question 95

Multiple Choice

Frank Company, which has total assets of $300,000, has an opportunity to invest $80,000 in a new project that will generate a return of $16,000 per year. Given this information, if Frank Company's acceptable return on investment is 22%, it will probably:


A) Accept the project, but also look for another project
B) Reject the project
C) Increase its return on investment by accepting the project
D) Not be able to make a decision based on the given information

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