A mini-mart needs a new freezer and the initial investment will cost $240,000. Incremental revenues, including cost savings, are $184,200, and incremental expenses, including depreciation, are $129,000. There is no salvage value. What is the accounting rate of return (ARR)? %
A mini-mart needs a new freezer and the initial investment will cost $240,000. Incremental revenues, including cost savings, are $184,200, and incremental expenses, including depreciation, are $129,000. There is no salvage value. What is the accounting rate of return (ARR)? %
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7EA: A mini-mart needs a new freezer and the initial Investment will cost $300,000. Incremental revenues,...
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![A mini-mart needs a new freezer and the initial investment
will cost $240,000. Incremental revenues, including cost
savings, are $184,200, and incremental expenses,
including depreciation, are $129,000. There is no salvage
value. What is the accounting rate of return (ARR)?
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fcc1f85-d6be-4b54-bb4f-0a2aff45016b%2F19358d3f-652b-4edc-b192-3f59b1e07ba4%2Fhqj169r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A mini-mart needs a new freezer and the initial investment
will cost $240,000. Incremental revenues, including cost
savings, are $184,200, and incremental expenses,
including depreciation, are $129,000. There is no salvage
value. What is the accounting rate of return (ARR)?
%
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