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bernie2981 bernie2981
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Posts: 3810
7 years ago
The formula for calculating the accounting rate of return for a capital asset is
A) average annual net cash inflow from asset/amount invested in asset.
B) (average annual operating income + depreciation expense)/amount invested in asset.
C) average annual operating income from asset/amount invested in asset.
D) (average annual cash inflows - depreciation expense)/(amount invested in asset + residual value of asset).
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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Posts: 2158
7 years ago
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bernie2981 Author
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7 years ago
Wow! Thank you
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