Question
Mark is considering investing $90,000 in a project with the following cash revenues and expenses: Year Revenues Cash Expenses & Depreciation Year 1 $20,000 $15,000
Mark is considering investing $90,000 in a project with the following cash revenues and expenses:
| Year | Revenues | Cash Expenses & Depreciation | ||
| Year 1 | $20,000 | $15,000 | ||
| Year 2 | $25,000 | $20,000 | ||
| Year 3 | $18,000 | $15,000 | ||
| Year 4 | $30,000 | $10,000 | ||
| Year 5 | $40,000 | $10,000 | ||
What is the accounting rate of return for the project?
a.15%
b.7%
c.14%
d.3%
e.Cannot be calculated with this information.
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Governmental Accounting Auditing And Financial Reporting
Authors: Michele Mark Levine, Todd Buikema
10th Edition
0891250107, 978-0891250104
