Question: NPV = CF,/(1+ k) : where t = 0,..., T 2. If the net income from an investment is expected to be 75,000; 100,000; 125,000;
NPV = CF,/(1+ k) : where t = 0,..., T 2. If the net income from an investment is expected to be 75,000; 100,000; 125,000; and 120,000 for the next four year and the investment cost $600,000 what is the average accounting rate of return (ARR)? ARR = Average Net Income Average Book Value
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