Question
nformation for two alternative projects involving machinery investments follow. The accounting rate of return for Project 1 is: Year Project 1 Project 2 Initial investment
nformation for two alternative projects involving machinery investments follow. The accounting rate of return for Project 1 is:
| Year | Project 1 | Project 2 |
|---|---|---|
| Initial investment | $ (240,000) | $ (180,000) |
| Salvage value | 0 | 20,000 |
| Annual income | 30,000 | 24,000 |
Multiple Choice
-
25.0%.
-
24.0%.
-
12.5%.
-
26.7%.
-
12.0%.
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740460, 978-1119740469
