Martha's Cupboards just purchased $172,500 of new equipment. The equipment is expected to increase the net income of the firm by $15,000, $35,000, $25,000, and $10,000 a year in each of the next four years. Martha's uses straight-line depreciation over the projected life of each project. What is the average accounting rate of return on this equipment?

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The Answer of Martha's Cupboards just purchased $172,500 of new equipment. The equipment is expected to increase the net income of the firm by $15,000, $35,000, $25,000, and $10,000 a year in each of the next four years. Martha's uses straight-line depreciation over the projected life of each project. What is the average accounting rate of return on this equipment?

Martha's Cupboards Just Purchased $172,500 of New Equipment