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.
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In this paragraph, Henry responds to the opposing argument, giving reasons to refute it. Many other members of the convention want to remain humble and respectful towards Britain and negotiate a treaty. Patrick Henry discredits this approach by saying that all these strategies had been attempted in the past.
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Answer:
Marble forms when sedimentary limestone is heated and squeezed by natural rock-forming processes so that the grains recrystallize. If you look closely at a limestone, you can usually see fossil fragments (for example, bits of shell) held together by a calcite matrix.
