Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

تمرين 20

Fantastic Oil Corporation is considering two alternatives for the installation of production
equipment on the Panther well in the Odessa West field. Alpha costs $275,000 and Beta
costs $350,000. The estimated net income generated from each is below: REqUIRED: Using accounting rate of return, determine which alternative Fantastic
should choose.