I think the answer is B. I hope it helps! :)
A ghost delivers a supernatural kiss of death
Would you like to learn how to keep at least five extra dollars a day? Today I will show you how switching from bottled water to tap water will allow you to keep money in your pocket and save the environment.
Based on the projected net incomes and cost of purchasing the equipment, the average accounting rate of return is 12.5%.
<h3>How can we find the average accounting rate of return?</h3>
This can be found as:
= Average cashflows / Average investment
Average cashflows are:
= (7,200 + 11,300 + 14,100 + 20,000) / 4
= $13,150
Average investment is:
= 210,000 / 2
= $105,000
The average accounting rate of return is:
= 13,150 / 105,000
= 12.5%
The new equipment should not be bought if the required AAR is 12% because it would be less than the AARR.
Find out more on Average accounting rate of return at brainly.com/question/18914899.
#SPJ1
