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.
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Its Narrow and gentle I just took the test
Answer:
I am pretty sure that this could be a rising action
Explanation:
I have to do those all of the time :)
Explanation:
Margie was performing badly in geography since the mechanical teacher was updated with higher level of geography. Since the level was higher than her standard, she could not catch up with the lessons as it was too advanced.
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