Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following information calculate the Accounting Rate of Return (ARR gross). Outlay = 200000 Annual Cash Flow = 70000 per year over four years

Given the following information calculate the Accounting Rate of Return (ARR gross).

Outlay = 200000

Annual Cash Flow = 70000 per year over four years

Life = 4 years

Rate = 0.12, as a decimal

Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage.Enter the % symbol e.g. 17%Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Forecasting

Authors: John E. Hanke, Dean Wichern

9th edition

132301202, 978-0132301206

More Books

Students also viewed these Finance questions