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Proposal X Proposal Y Investment $812,500 $390,000 Useful life 8 years 8 years Estimated annual net cash inflows for 8 years $125,000 $78,000 Residual value

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Proposal X Proposal Y Investment $812,500 $390,000 Useful life 8 years 8 years Estimated annual net cash inflows for 8 years $125,000 $78,000 Residual value $40,000 $- Straight- line Depreciation method Straight-line 14% 10% Required rate of return What is the accounting rate of return for Proposal X at Latimer Corporation? 15.38% 4.22% 27.27% W DEC 9 ty Lo 5

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