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dmitriy555 [2]
3 years ago
12

The following relates to a proposed equipment purchase: Cost $ 157,000 Salvage value $ 5,000 Estimated useful life 4 years Annua

l net cash flows $ 52,600 Depreciation method Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is
Business
1 answer:
Kruka [31]3 years ago
4 0

Answer:

$14,850

Explanation:

Depreciable amount = $158,000 - $5,000 = $153,000

Annual depreciation = $38,250

Annual net income = $53,100 - $38,250 = $14,850.

Therefore, the annual net income amount used to calculate the accounting rate of return is $14,850

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3 years ago
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it's b

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