The annual profit forecast for a project is: The project requires that a new machine be purchased
Question:
The annual profit forecast for a project is:
The project requires that a new machine be purchased for £128,000. It will be depreciated using the straight line method over five years to a residual value of £8,000. The project will cease when the machine is sold for £8,000 at the end of the fifth year. Ignoring taxation, what is the accounting rate of return?
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Sales Labour, materials, and overheads Depreciation Net profit before tax 3 46,000 24,000 f 160,000 70,000 90,000
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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