ch24 q8

Required Information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $53,100 and has an estimated $7,800 salvage value. QS 24-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment, assume the company uses straight-line depreciation Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return