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LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,500. The book value of the manufacturing equipment
LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,500. The book value of the manufacturing equipment that is used is $205,072, 200,000, 203,000, and 212,216 in years 1 through 4 respectively. What is the accounting rate of return? should the project be accepted? Assume that management has an acceptance rate of 25%. h O 24%: yes O 22.19% : no 0 27.4% : yes 0 24% : no o 22.19% : yes
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