Question
Q.8 (a) Using the information contained in the table below, calculate the accounting rate of return(ARR), showing all your working for both projects: Year Project
Q.8 (a) Using the information contained in the table below, calculate the accounting rate of return(ARR), showing all your working for both projects:
| Year |
| Project A | Project B |
|
|
| (100) | (100) |
| 0 |
| 20 | 35 |
| 1 |
| 25 | 35 |
| 2 |
| 35 | 30 |
| 3 |
| 25 | 15 |
| 4 |
| 25 | 10 |
| 5 |
| 25 | 10 |
| 6 |
| 10 | - |
(b)Explain the advantages and disadvantages of the accounting rate of return(ARR).[ 20 marks
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Information Technologies In Accounting And Auditing A Post-Soviet Approach
Authors: Sergiy Ivakhnenkov
1st Edition
3639285395, 978-3639285390
