has a 12-year service life and a $120,000 salvage value, and it uses straight-line depreciation. Compute this machine's accounting rate of return. Accounting Rate of Return Choose Denominator: /Annual average investment 23,000/ $ Choose Numerator: Annual after-tax net income $ 1 360,000 = Accounting Rate of Return Accounting rate of return 6.39 % =
has a 12-year service life and a $120,000 salvage value, and it uses straight-line depreciation. Compute this machine's accounting rate of return. Accounting Rate of Return Choose Denominator: /Annual average investment 23,000/ $ Choose Numerator: Annual after-tax net income $ 1 360,000 = Accounting Rate of Return Accounting rate of return 6.39 % =
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 3P
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