Question
The average (accounting) rate of return for a proposed average investment cost of $4,800,000 in a fixed asset, , with a useful life of 20
The average (accounting) rate of return for a proposed average investment cost of $4,800,000 in a fixed asset, , with a useful life of 20 years, no residual value, and an expected average annual net income of $1,056,000 over the 20 years is
- A. 24%
- B. 22%
- C. 45%
- D. 10%
Please show work
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Financial Accounting Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
1111464936, 978-1111464936
