A company is considering three alternative investment projects. Accounting rate of return computations are calculated using Excel
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A company is considering three alternative investment projects. Accounting rate of return computations are calculated using Excel and are shown below. If the company can choose only one project, which will it choose on the basis of accounting rate of return?
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Potential Projects Project A Project B Project C Average investment.... Annual income .... Accounting rate of return... $16,000 $ 4,000 $90,000 $60,000 $18,000 $13,200 25% 20% 22%
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