Question
Given the following information calculate the Accounting Rate of Return (ARR gross). Outlay = 100000 Annual Cash Flow = 70000 per year over four years
Given the following information calculate the Accounting Rate of Return (ARR gross).
Outlay = 100000
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.
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
