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Home Q & A Board Other Fields Homework Help Business Accounting
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8 years ago
Dartis Tools Co. is considering investing in specialized equipment costing $610,000. The equipment has a useful life of five years and a residual value of $69,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below:

Year 1   $210,000
2   159,000
3   160,000
4   95,000
5   136,000
   $760,000

What is the accounting rate of return on the investment? (Round your answer to two decimal places.)
A) 6.45%
B) 16.19%
C) 14.36%
D) 12.90%
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
Will mark this subject solved, thanks
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4 years ago
i need answer of this question
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