Shs. Project X cost 500,000 Scrap value 100,000 Stream of income before depreciation and taxes are as
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Question:
Shs.
Project X cost 500,000
Scrap value 100,000
Stream of income before depreciation and taxes are as follows:
Shs.
Year 1 100,000
Year 2 120,000
Year 3 140,000
Year 4 160,000
Year 5 200,000
Let tax = 50% and depreciation straight line. Calculate the accounting rate of return.
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