bout this proposed project follows: $ 475,965 9 years $ 54,000 ation method is used. rate of return for Bartlett tage answer to 2 decimal places.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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CAS
Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $100,429
per year. Other information about this proposed project follows:
$ 475,965
Initial investment
Useful life
9 years
Salvage value
$ 54,000
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett.
Note: Round your percentage answer to 2 decimal 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
Transcribed Image Text:CAS Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $100,429 per year. Other information about this proposed project follows: $ 475,965 Initial investment Useful life 9 years Salvage value $ 54,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal 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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