A company is evaluating three possible investments. Each uses the straight line method of depreciation. The following information is provided by the company: Project A Project B Project C Investment 228 , 000 52,000 228 , 000 R e s i d u a l v a l u e < s p a n c l a s s = " k a t e x " > < s p a n c l a s s = " k a t e x − h t m l " a r i a − h i d d e n = " t r u e " > < s p a n c l a s s = " b a s e " > < s p a n c l a s s = " s t r u t " s t y l e = " h e i g h t : 0.64444 e m ; v e r t i c a l − a l i g n : 0 e m ; " > < / s p a n > < s p a n c l a s s = " m o r d " >0 < / s p a n > < / s p a n > < / s p a n > < / s p a n >10 , 000 228,000 Residual value < s p an c l a ss = " ka t e x − h t m l " a r ia − hi dd e n = " t r u e " >< s p an c l a ss = " ba se " >< s p an c l a ss = " s t r u t " s t y l e = " h e i g h t : 0.64444 e m ; v er t i c a l − a l i g n : 0 e m ; " >< / s p an > < s p an c l a ss = " m or d " >0 < / s p an >< / s p an >< / s p an > < / s p an >10 , 000 34,000 Net cash flows: Year 1 56 , 000 24,000 86 , 000 Y e a r 2 < s p a n c l a s s = " k a t e x " > < s p a n c l a s s = " k a t e x − h t m l " a r i a − h i d d e n = " t r u e " > < s p a n c l a s s = " b a s e " > < s p a n c l a s s = " s t r u t " s t y l e = " h e i g h t : 0.8388800000000001 e m ; v e r t i c a l − a l i g n : − 0.19444 e m ; " > < / s p a n > < s p a n c l a s s = " m o r d " >56 < / s p a n > < s p a n c l a s s = " m p u n c t " >, < / s p a n > < s p a n c l a s s = " m s p a c e " s t y l e = " m a r g i n − r i g h t : 0.16666666666666666 e m ; " > < / s p a n > < s p a n c l a s s = " m o r d " >000 < / s p a n > < / s p a n > < / s p a n > < / s p a n >15 , 000 86,000 Year 2 < s p an c l a ss = " ka t e x − h t m l " a r ia − hi dd e n = " t r u e " >< s p an c l a ss = " ba se " >< s p an c l a ss = " s t r u t " s t y l e = " h e i g h t : 0.8388800000000001 e m ; v er t i c a l − a l i g n : − 0.19444 e m ; " >< / s p an > < s p an c l a ss = " m or d " >56 < / s p an > < s p an c l a ss = " m p u n c t " >, < / s p an >< s p an c l a ss = " m s p a ce " s t y l e = " ma r g in − r i g h t : 0.16666666666666666 e m ; " >< / s p an > < s p an c l a ss = " m or d " >000 < / s p an >< / s p an >< / s p an > < / s p an >15 , 000 56,000 Year 3 56 , 000 11,000 66 , 000 Y e a r 4 < s p a n c l a s s = " k a t e x " > < s p a n c l a s s = " k a t e x − h t m l " a r i a − h i d d e n = " t r u e " > < s p a n c l a s s = " b a s e " > < s p a n c l a s s = " s t r u t " s t y l e = " h e i g h t : 0.8388800000000001 e m ; v e r t i c a l − a l i g n : − 0.19444 e m ; " > < / s p a n > < s p a n c l a s s = " m o r d " >56 < / s p a n > < s p a n c l a s s = " m p u n c t " >, < / s p a n > < s p a n c l a s s = " m s p a c e " s t y l e = " m a r g i n − r i g h t : 0.16666666666666666 e m ; " > < / s p a n > < s p a n c l a s s = " m o r d " >000 < / s p a n > < / s p a n > < / s p a n > < / s p a n >8 , 000 66,000 Year 4 < s p an c l a ss = " ka t e x − h t m l " a r ia − hi dd e n = " t r u e " >< s p an c l a ss = " ba se " >< s p an c l a ss = " s t r u t " s t y l e = " h e i g h t : 0.8388800000000001 e m ; v er t i c a l − a l i g n : − 0.19444 e m ; " >< / s p an > < s p an c l a ss = " m or d " >56 < / s p an > < s p an c l a ss = " m p u n c t " >, < / s p an >< s p an c l a ss = " m s p a ce " s t y l e = " ma r g in − r i g h t : 0.16666666666666666 e m ; " >< / s p an > < s p an c l a ss = " m or d " >000 < / s p an >< / s p an >< / s p an > < / s p an >8 , 000 26,000 Year 5 56 , 000 0 $0 What is the accounting rate of return for Project B? (Round your answer to two decimal places.) Select one: A. 20.84% B. 9.82% C. 12.22% D. 12.90%
A company is evaluating three possible investments. Each uses the straight line method of depreciation. The following information is provided by the company: Project A Project B Project C Investment 228 , 000 52,000 $228,000 Residual value 0 10,000 $34,000 Net cash flows: Year 1 56 , 000 24,000 $86,000 Year 2 56 , 000 15,000 $56,000 Year 3 56 , 000 11,000 $66,000 Year 4 56 , 000 8,000 $26,000 Year 5 56 , 000 0 $0 What is the accounting rate of return for Project B? (Round your answer to two decimal places.) Select one: A. 20.84% B. 9.82% C. 12.22% D. 12.90%
A Company Is Evaluating Three Possible Investments What Is the Accounting Rate of Return for Project C
A company is evaluating three possible investments.Each uses the straight-line method of depreciation.The following information is provided by the company: Project A Project B Project C Investment $ 240 , 000 $ 54 , 000 $ 240 , 000 Residual value 0 10 , 000 36 , 000 Net cash inflows: Year 1 52 , 000 40 , 000 96 , 000 Year 2 52 , 000 31 , 000 66 , 000 Year 3 52 , 000 27 , 000 76 , 000 Year 4 52 , 000 24 , 000 36 , 000 Year 5 52 , 000 0 0 begin < | l | r | r | r | >hline & text < Project A >& text < Project B >& text < Project C >\hline text < Investment >& $ 240,000 & $ 54,000 & $ 240,000 \hline text < Residual value >& 0 & 10,000 & 36,000 \hline text < Net cash inflows: >& & & \hline text < Year 1 >& 52,000 & 40,000 & 96,000 \hline text < Year 2 >& 52,000 & 31,000 & 66,000 \hline text < Year 3 >& 52,000 & 27,000 & 76,000 \hline text < Year 4 >& 52,000 & 24,000 & 36,000 \hline text < Year 5 >& 52,000 & 0 & 0 \hlineend Investment Residual value Net cash inflows: Year 1 Year 2 Year 3 Year 4 Year 5 Project A $240 , 000 0 52 , 000 52 , 000 52 , 000 52 , 000 52 , 000 Project B $54 , 000 10 , 000 40 , 000 31 , 000 27 , 000 24 , 000 0 Project C $240 , 000 36 , 000 96 , 000 66 , 000 76 , 000 36 , 000 0 What is the accounting rate of return for Project C? (Round your answer to two decimal places.)
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