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A company is evaluating three possible investments. Each uses straight-line method of depreciation. Following information is provided by the company. Project A Project Project Investment
A company is evaluating three possible investments. Each uses straight-line method of depreciation. Following information is provided by the company. Project A Project Project Investment 200,000 $50,000 $200.000 Salvage value 5.000 30,000 Net cash flows: Year 1 50,000 25,000 70,000 Year 2 50,000 16,000 60,000 Year 3 50.000 12,000 550,000 Year 4 50.000 9,000 40,000 Year 5 50,000 What is the accounting rate of return for Project C
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