Simple rate of return : It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula: Simple rate of return = Average Accounting Profits Average Investment Project’s simple rate of return of each five years.

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Answer 1

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

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Answer 2

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Answer 6

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Answer 7

Chapter 12, Problem 8F15

To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Solution Summary: The author explains that simple rate of return is the rate by which companies estimate how much an organisation can expect to make off of a capital investment each year.

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