what is accounting rate of return for project B ? Q1 A company is evaluating three possible investments. Each uses the straight-line method ofdepreciation. Following information is provided by the company:Project A Project B Project C$54,00012,000$230,00036,000Investment$230,000Residual valueNet cash flows:Year 1Year 256,00056,00056,00056,00056,00038,00029,00025,00022,00094,00064,00074,00034,000Year 3Year 4Year 5What is the accounting rate of return for Project B? (Round your answer to two decimal places.

Computation of Average Investment is as follows: Average investment =Initial value+Salvage…

Q1 A company is evaluating three possible investments. Each uses the straight-line method of depreciation. Following information is provided by the company: Project A $230,000 Project B Project C $54,000 12,000 $230,000 36,000 Investment Residual value Net cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 56,000 56,000 56,000 56,000 56,000 38,000 29,000 25,000 22,000 94,000 64,000 74,000 34,000 What is the accounțing rate of return for Project B? (Round your answer to two decimal places.

Q1 A company is evaluating three possible investments. Each uses the straight-line method of depreciation. Following information is provided by the company: Project A $230,000 Project B Project C $54,000 12,000 $230,000 36,000 Investment Residual value Net cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 56,000 56,000 56,000 56,000 56,000 38,000 29,000 25,000 22,000 94,000 64,000 74,000 34,000 What is the accounțing rate of return for Project B? (Round your answer to two decimal places.

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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