In this scenario, the managers have <span>an <u>A-TYPE CONFLICT</u>. This is a type of disagreement or conflict that focuses on personal or individual issues that are not totally related to the business at hand.
Often, this type of arguments may ruin how the company ethically performs. People who have personal issues against colleagues or co-workers are what drives some people to leave the company or choose to become inefficient at work. </span>
Answer :
Accounting rate of return = 0.0432 = 4.32%
Explanation :
As per the data given in the question,
Depreciation per year = (Cost - Salvage) ÷ Useful life
= ($810,000 - $10,000) ÷ 8 years
= $100,000
Annual Net income = Annual net cash flow - Depreciation
= $135,000 - $100,000
= $35,000
Accounting rate of return = Annual net income ÷ investment
= $35,000 ÷ $810,000
= 0.0432
= 4.32%
We simply applied the above formula
