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.
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Answer:
In Algebra many questions ask you to find the Y-intercept.
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The bear standing on the ice is a white polar bear.
Explanation:
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Answer: they are both about the same size and look quite similar
Explanation:
I believe your answer is (Consensus)it’s a general agreement, Hope I’ve helped you.
