IceSupplies is considering investing $\pounds 120,000$ in a large$-$scale, industrial ice$-$making machine $.$ The machine will be kept for four

years, after which time it will sell for $\pounds 45,000.$ Depreciation is charged on a straight$-$line basis. The organization predicts the

following operating profits and losses:

What is the Accounting Rate of Return $($ARR$)$ and the cumulative cash flow at the end of year $2?\; Calculate.$

Answer rating: 100% (QA)

To calculate the Accounting Rate of Return ARR and the cumulative cash flow at the end of year 2 we ... View the full answer