Transport Ltd is considering fitting a mounted forklift to each of its five delivery trucks. They have

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Transport Ltd is considering fitting a mounted forklift to each of its five delivery trucks. They have decided to base their decision on the accounting rate of return and provide you with the following information:

The cost of the mounted forklifts will be €95,000 and they are expected to have a five year life with a scrap value of €5,000. The purchase of the forklifts is expected to result in a

€10,000 cash inflow in the first year and cash inflows of €40,000, €40,000, €60,000 and

€45,000 in years two to five respectively. Determine the forklifts accounting rate of return.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Posted Date: Feb 01, 2023 02:17 AM

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Transport Ltd is considering fitting a mounted forklift to each of its five delivery trucks. They have

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Depriciation per year 2 3 u S Calculation de Net Profit year cash inflows 4 10000 40000 4... View the full answer

Intermediate Accounting

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