E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $85,152 per year. Other information about this proposed project follows: Initial investment $423,640 Useful life 8 years Salvage value $ 49,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.) 1. Accounting Rate of Return 2. Payback Period years
E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $85,152 per year. Other information about this proposed project follows: Initial investment $423,640 Useful life 8 years Salvage value $ 49,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.) 1. Accounting Rate of Return 2. Payback Period years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Calculate the accounting
2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.)
![E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2]
Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $85,152 per
year. Other information about this proposed project follows:
Initial investment
$423,640
Useful life
8 years
Salvage value
$ 49,000
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.)
2. Calculate the payback period for Bartlett. (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%2F20848812-621c-4ba9-9994-c603e7f0f44f%2Fe0428469-ab35-441c-99ba-ba0f948ab535%2Fpvvde6.png&w=3840&q=75)
Transcribed Image Text:E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2]
Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $85,152 per
year. Other information about this proposed project follows:
Initial investment
$423,640
Useful life
8 years
Salvage value
$ 49,000
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.)
2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.)
1. Accounting Rate of Return
2. Payback Period
years
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