Marty Neilson has just invested $130,000 in a restaurant that will provide him with an annual income of $18900.He expects to hold the investment for 8 years. What is the accounting rate of return (as a percentage)? ROUNDYOUR ANSWER TO 2 DECIMAL PLACES. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.

The objective of the question is to calculate the Accounting Rate of Return (ARR) for Marty…

Answered: Marty Neilson has just invested…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Marty Neilson has just invested $130,000 in a restaurant that will provide him with an annual income of $18900. He expects to hold the investment for 8 years. What is the accounting rate of return (as a percentage)? ROUND YOUR ANSWER TO 2 DECIMAL PLACES. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.