Question

Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $53,000 per year. Other information about this proposed project follows:
Initial investment ..... $510,000
Useful life .......... 8 years
Salvage value .......... $ 50,000

Required:
Calculate and evaluate the following for Bartlett:
1. Accounting rate of return.
2. Payback period.



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  • CreatedFebruary 27, 2015
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