A company is analyzing two capital expenditure proposals to decide which opportunity to invest in and, among

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A company is analyzing two capital expenditure proposals to decide which opportunity to invest in and, among other analyses, is using the accounting rate of return on investment as a basis for comparing the two projects.

Should the company use the initial investment in the assets or the average investment in the assets in making the calculation? Explain.

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Cost Accounting Principles And Applications

ISBN: 9780028034287

6th Edition

Authors: Horace R. Brock, Linda Herrington

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