The following relates to a proposed equipment purchase:
Cost $161,000
Salvage value $7,000 <...
Business, 15.12.2020 16:20 brianabrady06
The following relates to a proposed equipment purchase:
Cost $161,000
Salvage value $7,000
Estimated useful life 4 years
Annual net cash flows $54,600
Depreciation method Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:
a. $54,600
b. $16,100
c. $17,850
d. $93,100
e. $52,850
Answers: 1
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