Which of the following is not a method for appraising potential investments?

Select one:

a. Accounting rate of return

b. Payback method

c. Net present value method

d. Return on assets

Somsom Bhd, a manufacturing firm, is considering investing $110,000 in a new mainframe computer. It is estimated that net cash flow per year will be $25,000 and the computer will have a 10-year useful life and zero residual value. The machine will be depreciated on a straight-line basis. The accounting rate of return is:

Select one:

a. 28.28%

b. 23.10%.

c. 22.72%.

d. 25.45%.