Question
Question 2) Dartis Company is considering investing in a specialized equipment costing $800,000. The equipment has a useful life of 5 years and a residual
Question 2) Dartis Company is considering investing in a specialized equipment costing $800,000. The equipment has a useful life of 5 years and a residual value of $55,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below.
| Year 1 | $200,000 |
| 2 | 150,000 |
| 3 | 260,000 |
| 4 | 95,000 |
| 5 | 95,000 |
What is the accounting rate of return on the investment?
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Practical Guide To Accountancy
Authors: Ajit Kumar Chattopadhyay, Amalendu Mukhopadhyay
1st Edition
1642874264, 9781642874266
