Nylan Tiles is considering an investment in new equipment costing $866, 000.The equipment will be depreciated on
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Nylan Tiles is considering an investment in new equipment costing $866, 000.The equipment will be depreciated on a straight – line basis over a five - year life and is expected to have a residual value of $58, 000. The equipment is expected to generate net cash inflows of $1, 004, 000 in total during the five - year life. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimalplaces.)
A. 11.54 %
B. 45.01 %
C. 8.48 %
D. 9.31 %
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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