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 flows:
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
What is the accounting rate of return for Project C? (Round your answer to two decimal places.)
A. 12.50%
B. 15.00%
C. 44.44%
D. 12.68%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company is evaluating three possible investments. Each uses the straight-line method of depreciation. The following information is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30. a. Beginning cash balance, September 1, $40,000. b.
Answers (1)
Jasper Company uses the allowance method to account for bad debts. During 2016, the company recorded bad debt expense of $9,000 and wrote off as uncollectible accounts receivable totaling $5,000.
Answers (2)
Your venture has net income of $600,000 taxable income of $1,000,000 operating profit of $1,200,000 total financial capital including both debt and equity of $9,000,000 a tax rate of 40%, and a WACC of 10%. What is your venture's EVA?
Answers (1)
A certain project has a project cost of $387,000 and the annual inflows resulting from the product created is $64,000. What is the Payback Period?
Answers (1)
In which sentence is the modifier great correctly used? the return on my investment was more greater than i expected. the return on my investment was greater than i expected. the return on my investment was more great than i expected.
Answers (1)
New Questions in Business
The following are the job cost related accounts for the law firm of Colaw Associates and their manufacturing equivalents: Law Firm Accounts Manufacturing Firm Accounts Supplies Raw Materials Salaries and Wages Payable Factory Wages Payable Operating
Answers (1)
Name and explain the relationship between corporate social responsibility and triple bottom line.
Answers (1)
One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Answers (1)
Describe an industry or firm that you think might be able to weather an economic downturn and explain why.
Answers (1)
Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 800,000 Variable expenses $ 381,000 Fixed manufacturing expenses $ 263,000 Fixed selling and administrative expenses $ 211,000
Answers (1)