Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need some assistance Average Rate of Return The average rate of return is another method that does not use present value and is commonly used

Need some assistance

image text in transcribed
Average Rate of Return The average rate of return is another method that does not use present value and is commonly used in making capital investment decisions. Unlike the cash payback method, the average rate of return focuses on income lather than cash ow. Assume that the investment involves an initial outlay of $100,000 with a veryear useful life and no salvage value under straightrline depreciation. The revenues are as follows: Year 1 , $20,000, Year 2 , $30,000, Year 3 , $40,000, Year 4 , $50,000 and Year 5 - $60,000. Use the minus Sign to indicate a net loss. If an amountis zero, enter "El". Year Revenues Expenses Net Income Year 1 Net Income (loss) = Year 2 Net Income (loss) Year 3 Net Income (loss) Year 4 Net Income (loss) a a s a g ii a a 4.. a Year 5 Net Income (loss) Total Net Income (ve years) = Average Net Income : Average Rate of Return : $ = X % Fem Vcheck Mymk Complete the list mannual revenues as noted in the problem. For expenses, compute the stralgtrHIne depreciation for this easel over veyears

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

Financial Accounting

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

12th Edition

0538478519, 9780538478519

More Books

Students also viewed these Accounting questions

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago