<span>Prepare, Postpone, Preview</span>
Is a clause that can stand by itself in a simple sentence
The answer is C. <span>the criteria the committee uses to create a list of nominees</span>
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
