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Radda [10]
3 years ago
10

A project has an initial cost of $80,000 and a 3-year life. The company uses straight-line depreciation to a book value of zero

over the life of the project. The projected net income from the project is $1,200, $2,300, and $2,800 a year for the next 3 years, respectively. What is the average accounting return? 5.25 percent 5.35 percent 5.45 percent 5.56 percent
Business
1 answer:
joja [24]3 years ago
4 0

Answer:

5.25%

Explanation:

The computation of the average accounting return is shown below:

Average accounting return is

= Average net income ÷ average initial cost

where,

Average net income is

= ($1,200 + $2,300 + $2,800) ÷ 3 years

= $2,100

And, the average initial cost is

= $80,000 ÷ 2

= $40,000

So , the average accounting return is

= $2,100 ÷ $40,000

= 5.25%

Hence, the average accounting return is 5.25%

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Answer:

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3 0
4 years ago
A company that makes which of the following types of products would best be suited for a job costing system?a. Fruit juice b. Ba
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Answer:

custom jewelry              

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5 0
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Answer:

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Explanation:

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Answer:

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Answer:

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Explanation:

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