The annual profit forecast for a project is: The project requires that a new machine be purchased
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The annual profit forecast for a project is:
The project requires that a new machine be purchased for £180,000. It will be depreciated using the straight line method over five years to a residual value of £15,000. The project will cease when the machine is sold for £15,000 at the end of the fifth year. Ignoring taxation, what is the accounting rate of return? (No additional working capital is required for this project.)
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The accounting rate of return ARR is calculated as the average annual accounting profit divided by t...View the full answer
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Related Book For 
Frank Woods Business Accounting Volume 2
ISBN: 9781292085050
13th Edition
Authors: Frank Wood, Alan Sangster
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