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Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information
Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCAs cost of capital $ 230,000 10 years 25,000 $5,200 7% Assume straight line depreciation method is used. 0.50 points Required: Help FCA evaluate this project by calculating each of the following 1. Accounting rate of return. (Round your answer to 2 decimal places.) Rate of Return
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