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Calculate the profitability of the following proposal using Average rate return (ARR) method Proposal I Automatic machine Cost OMR 320000 Estimated life4.5 years Estimated sales P.A 220000 Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000 a. 16.53% b. 3.19% c. 4.62% d. All the options are wrong

Calculate the profitability of the following proposal using Average rate return (ARR) method Proposal I Automatic machine Cost OMR 320000 Estimated life4.5 years Estimated sales P.A 220000 Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000 a. 16.53% b. 3.19% c. 4.62% d. All the options are wrong

Essentials Of Investments
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
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Calculate the profitability of the following proposal using Average rate return (ARR) method
Proposal I
Automatic machine Cost OMR 320000
Estimated life4.5 years
Estimated sales P.A 220000
Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000

a.
16.53%

b.
3.19%

c.
4.62%

d.
All the options are wrong

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