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vestment that requires initial cash outlay of $100,000 has a useful life of 3 years, me wese years the before-tax cash flow is $40.000. If
vestment that requires initial cash outlay of $100,000 has a useful life of 3 years, me wese years the before-tax cash flow is $40.000. If the tax rate is 34% and straight-line depreciation is used, the average accounting return is: 0,0001/3 = 13,333 C1-0.34) A. 40.00% ARR Nora Ne Incom 9,800 B. 26.40%X OR C. 13.34% Average Book Value 100,000 $13,333 x 20. D. 8.80% 4.533
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