Question
X company just purchased $172500 of new equipment. The equipment is expected to increase the net income of the firm by $15000, $35000, $25000 and
X company just purchased $172500 of new equipment. The equipment is expected to increase the net income of the firm by $15000, $35000, $25000 and $10000 a year in each of the next four years. Martha's uses straight-line depreciation over the projected life of each project. What is the average accounting rate of return on this equipment? The answer is 24.64%
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
4th Edition
9781934319345
