Question
A company is considering a project with an initial capital outlay of $200,000. The project is expected to have average annual net income of $12,500,
A company is considering a project with an initial capital outlay of $200,000. The project is expected to have average annual net income of $12,500, average annual cash flow of $60,000, and an average book value of $100,000. The company requires a 12% return on investment. What is the average accounting return for this project?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
