managerial accounting question. 19 of 43 (21 complete) A company is evaluating three possible investments. Each uses the straight- line method of depreciation. The following information is provided by the companyProject A$238.000Project B$52,000Project C$238 000InvestmentResidual valueNet cash inflows:16,00032,000Year 1Year 262.00024,00092.00062,00072.00032,00015,00062,00062.00062,00062,000Year 311.000Year 48.000Year 5What is the accounting rate of return for Project C? (Round your answer to two decimal places.)O A. 9.63%O B. 12.61%O C. 15.38%OD. 13.45%Click to select your answer.O Type here to search

SOLUTION- ACCOUNTING RATE OF RETURN- IT ALSO CALLED THE SIMPLE OR AVERAGE RATE OF RETURN , IS AN…

A company is evaluating three possible investments Each uses the straight- line method of depreciation The following information is provided by the company Project A $238 000 Project B Project C Investment S52,000 $238 000 Residual value 16,000 32.000 Net cash inflows: Year 1 62,000 24,000 92.000 62,000 62,000 62.000 Year 2 15,000 11,000 8,000 62,000 72,000 32,000 Year 3 Year 4 Year 5 62.000 What is the accounting rate of return for Project C? (Round your answer to two decimal places) O A. 9.63% O B. 12.61% OC. 15.38% O D. 13 45%

A company is evaluating three possible investments Each uses the straight- line method of depreciation The following information is provided by the company Project A $238 000 Project B Project C Investment S52,000 $238 000 Residual value 16,000 32.000 Net cash inflows: Year 1 62,000 24,000 92.000 62,000 62,000 62.000 Year 2 15,000 11,000 8,000 62,000 72,000 32,000 Year 3 Year 4 Year 5 62.000 What is the accounting rate of return for Project C? (Round your answer to two decimal places) O A. 9.63% O B. 12.61% OC. 15.38% O D. 13 45%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

managerial accounting question.

A company is evaluating three possible investments. Each uses the straight- line method of depreciation. The following information is provided by the company
Project A
$238.000
Project B
$52,000
Project C
$238 000
Investment
Residual value
Net cash inflows:
16,000
32,000
Year 1
Year 2
62.000
24,000
92.000
62,000
72.000
32,000
15,000
62,000
62.000
62,000
62,000
Year 3
11.000
Year 4
8.000
Year 5
What is the accounting rate of return for Project C? (Round your answer to two decimal places.)
O A. 9.63%
O B. 12.61%
O C. 15.38%
OD. 13.45%
Click to select your answer.
O Type here to search

Definition Definition Process by which financial information is analyzed, interpreted, and communicated to managers to support the achievement of an organization's goals. The main objective of managerial accounting is to maximize profits and minimize losses.

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