Bartlett Car Wash Company is considering the purchase of a new facility. It would a Bartlett to increase its net income by $113,196 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $ 519,250 10 years $ 50,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett Note: Round your percentage answer to 2 decir al places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return 2. Payback Period % years
Bartlett Car Wash Company is considering the purchase of a new facility. It would a Bartlett to increase its net income by $113,196 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $ 519,250 10 years $ 50,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett Note: Round your percentage answer to 2 decir al places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return 2. Payback Period % years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please do not give solution in image format thanku
![Bartlett Car Wash Company is considering the purchase of a new facility. It would allow
Bartlett to increase its net income by $113,196 per year. Other information about this
proposed project follows:
Initial investment
Useful life
Salvage value
$ 519,250
10 years
$ 50,000
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett
Note: Round your percentage answer to 2 decir al places.
2. Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
1. Accounting Rate of Return
2. Payback Period
%
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F659fb910-117f-4c33-a9e0-29d3ad7fdc50%2F7ff8b094-f82d-4784-8599-849d60998a27%2F4hz4cap_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bartlett Car Wash Company is considering the purchase of a new facility. It would allow
Bartlett to increase its net income by $113,196 per year. Other information about this
proposed project follows:
Initial investment
Useful life
Salvage value
$ 519,250
10 years
$ 50,000
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett
Note: Round your percentage answer to 2 decir al places.
2. Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
1. Accounting Rate of Return
2. Payback Period
%
years
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