Assume that the cost of certain equipment a business is considering purchasing is $100,000.The equipment will be depreciated over five years,at which point the salvage value is expected to be $8,000.Anticipated after-tax profits (losses)are as follows:
Year
After-Tax Profits/Losses
1
($10,000)
2
20,000
3
25,000
4
35,000
5
20,000
Compute the accounting return on investment technique showing the formulas and computations.

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The Answer of Assume that the cost of certain equipment a business is considering purchasing is $100,000.The equipment will be depreciated over five years,at which point the salvage value is expected to be $8,000.Anticipated after-tax profits (losses)are as follows:
Year
After-Tax Profits/Losses
1
($10,000)
2
20,000
3
25,000
4
35,000
5
20,000
Compute the accounting return on investment technique showing the formulas and computations.

Assume That the Cost of Certain Equipment a Business Is