An initial investment of $180,000 is expected to generate $75,000 in annual cost savings over the asset's expected 3- year life. Assume straight- line depreciation and ignore income taxes. The accounting rate of return based on initial investment is:

Question

Quizplus · Accepted Answer

The Answer of An initial investment of $180,000 is expected to generate $75,000 in annual cost savings over the asset's expected 3- year life. Assume straight- line depreciation and ignore income taxes. The accounting rate of return based on initial investment is:

An Initial Investment of $180,000 Is Expected to Generate $75,000