|
Title: Jensen Manufacturing Ltd. is considering buying a laser machine which costs $250,000. It requires ... Post by: StormLrd on Nov 8, 2017 Jensen Manufacturing Ltd. is considering buying a laser machine which costs $250,000. It requires working capital of $25,000 which will be returned at the end of the project. Annual cash savings are anticipated to be $103,000 for five years. The salvage value at the end of five years is expected to be nil. The company uses straight-line depreciation.
Required: Determine the accrual accounting rate of return of the investment. Title: Re: Jensen Manufacturing Ltd. is considering buying a laser machine which costs $250,000. It ... Post by: Allopa on Nov 8, 2017 [($103,000 - ($250,000/5 years)) รท (250,000 + 25,000)] = 19.27%
|