Question
Quick Cleaners is considering whether to purchase a delivery truck that will cost $29,000; last six years; and have an estimated residual value of $5,000.
Quick Cleaners is considering whether to purchase a delivery truck that will cost $29,000; last six years; and have an estimated residual value of $5,000. Average annual net income from the delivery service is estimated to be $4,000. Quicks owners seek to earn an accounting rate of return of 20%. Compute the average investment cost and the accounting rate of return. Should the investment be made?
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Principles Of Food Beverage And Labor Cost Controls
Authors: Paul R. Dittmer, J. Desmond Keefe
8th Edition
0471429929, 978-0471429920
