Donald Martin is evaluating a new ticketing system for his theater. The system will cost $273,600 and will save the theater $54,884 in annual cash operating costs. Donald expects the new system to last 8 years, at which time the system will have a salvage value of $20,000. If Donald purchases the new system, he will be able to sell his existing system for $16,000. (a) Calculate the accounting rate of return for the proposed ticketing system. Accounting rate of return % (b) Donald Martin wants to earn a minimum accounting rate of return of 8% on his projects. Should he invest in the new equipment? Donald Martin invest in the new equipment.

Donald Martin is evaluating a new ticketing system for his theater. The system will cost $273,600 and will save the theater $54,884 in annual cash operating costs. Donald expects the new system to last 8 years, at which time the system will have a salvage value of $20,000. If Donald purchases the new system, he will be able to sell his existing system for $16,000. (a) Calculate the accounting rate of return for the proposed ticketing system. Accounting rate of return % (b) Donald Martin wants to earn a minimum accounting rate of return of 8% on his projects. Should he invest in the new equipment? Donald Martin invest in the new equipment