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elena55 [62]
2 years ago
15

Assume straight-line depreciation and equal cash flows. A company plans to purchase equipment for $25,000. The equipment will ha

ve $0 salvage value and increase income by $7,500 annually during its 5-year life. The accounting rate of return is
Business
1 answer:
Allisa [31]2 years ago
6 0

Based on the purchase price of the equipment and the increase in annual income, the accounting rate of return is 60%.

<h3 /><h3>What is the accounting rate of return?</h3>

This can be found by the formula:

= Average annual income - Average investment

The average investment is:

= Purchase price / 2

= 25,000 / 2

= $12,500

The accounting rate of return is:

= 7,500 / 12,500

= 60%

Find out more on the accounting rate of return at brainly.com/question/21276152.

#SPJ4

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Explanation:

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3 0
3 years ago
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Small companies don't have middle management, so it is entirely appropriate for senior management to implement strategy and guide employees directly.

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Explanation:

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3 years ago
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inn [45]

Answer:

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3 0
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In order for a business to be really successful,
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Read 2 more answers
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