ABC Corporation is considering two alternative investment proposals with the following data Proposal B Proposal A...
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ABC Corporation is considering two alternative investment proposals with the following data Proposal B Proposal A $810,000 8 years $130,000 $58,000 Straight-line 13% Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of retum $466,000 8 years $70,000 $₁ Straight-line 10% What is the accounting rate of retum for Proposal A? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent. X.XX%.) ABC Corporation is considering two alternative investment proposals with the following data Proposal B Proposal A $810,000 8 years $130,000 $58,000 Straight-line 13% Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of retum $466,000 8 years $70,000 $₁ Straight-line 10% What is the accounting rate of retum for Proposal A? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent. X.XX%.)
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The accounting rate of return ARR can be calculated using the following formula ARR Average Annual ... 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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