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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7). Dictionaries, thesauruses, online, and in books.
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9). Huge, gigantic, enormous
10). It can help you find more professional and interesting words
In England, a group called Parliament meets to make the laws in the Palace of Westminster in London
Answer:
Wow that rhymes really well!! great job! Now can I have the meaningful question?
