ABC Corporation is considering two alternative investment proposals with the following data Proposal B $489,000 Investment...
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ABC Corporation is considering two alternative investment proposals with the following data Proposal B $489,000 Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of retur Proposal A $810,000 8 years $150,000 $19,000 Straight-line 12% 8 years $96,000 Straight-line 11% What is the accounting rate of return for Proposal B? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, XXX%) ABC Corporation is considering two alternative investment proposals with the following data Proposal B $489,000 Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of retur Proposal A $810,000 8 years $150,000 $19,000 Straight-line 12% 8 years $96,000 Straight-line 11% What is the accounting rate of return for Proposal B? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, XXX%)
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To calculate the accounting rate of return for Proposal B we need to follow these steps Step 1 Calcu... View the full answer
Related Book For
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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