Prairie Eateries Limited (PEL) is considering the following projects. PEL uses straight-line depreciation. Required: Calculate the accounting

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Prairie Eateries Limited (PEL) is considering the following projects. PEL uses straight-line depreciation.

Required:
Calculate the accounting rate of return for each project.

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Financial Management for Decision Makers

ISBN: 978-0138011604

2nd Canadian edition

Authors: Peter Atrill, Paul Hurley

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Question Posted: Apr 21, 2016 04:36 AM

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Prairie Eateries Limited (PEL) is considering the following projects. PEL uses straight-line depreciation. Required: Calculate the accounting

Question:

Projects Net profit increases before depreciation Cost Salvage value Economic life in years $42,000 50,000$80,000 $250,000 $500,000 $40,000 20 16,000 $25,000 $35,000 $10,000 $50,000 10

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Financial Management for Decision Makers

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