Question 17

Given the following information calculate the Accounting Rate of Return (ARR gross).

Outlay = 200000

Annual Cash Flow = 60000 per year over four years

Life = 4 years

Rate = 0.11, as a decimal

Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage. Enter the % symbol e.g. 17%Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.