An investment of $1,000 provides an average net income of $220 with zero salvage value. Depreciation is
Question:
An investment of $1,000 provides an average net income of $220 with zero salvage value. Depreciation is $20 per year. The accounting rate of return using the original investment is
a. 44 percent.
b. 22 percent.
c. 20 percent.
d. 40 percent.
e. none of the above.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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