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please assist with accounting rate of return 5.2 Accounting Rate of Return, on average investment, of Project X (expressed to two decimal (4 marks) Tafel
please assist with accounting rate of return
5.2 Accounting Rate of Return, on average investment, of Project X (expressed to two decimal (4 marks) Tafel Corporation is considering investing R300 000 in one of two alternative capital projects. The expected useful life of each project is five years. No scrap value is expected for both projects. The estimated cash inflows and cash outflows relating to the two alternative projects are as follows: The company estimates that its cost of capital is 12%. Depreciation is expected to amount to R60 000 per year for each project Step by Step Solution
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