ABC Corporation has total assets of 120 million, total liabilities of 80 million, Goodwill of 12 million, and 4 millions of shar
1 answer:
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Answer:
So, accounting rate of return = 33 %
Explanation:
given data
net income after tax = $179,850
initial cost = $545,000
time = 7 year
salvage value = $34,000
we will get here the accounting rate of return
solution
as we know that accounting rate of return is express as
accounting rate of return = Net income ÷ initial investment .................1
put here value and we get
accounting rate of return =
So, accounting rate of return = 33 %