Question
Flint Systems is considering investing in production-management software that costs $640,000, has $67,000 residual value, and leads to cost savings of $1,850,000 per year over
Flint Systems is considering investing in production-management software that costs $640,000, has $67,000 residual value, and leads to cost savings of $1,850,000 per year over its five-year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.
| a | $67,000 |
| b | $707,000 |
| c | $353,500 |
| d | $640,000 |
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Hospitality Management Accounting
Authors: Michael M. Coltman, Martin G. Jagels, Martin Jagels
7th Edition
0471348848, 978-0471348849
