An initial investment of $270,000 is expected to generate $120,000 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:
A) 33.33%
B) 11.11%
C) 44.44%
D) None of these answers is correct.
Correct Answer:
Verified
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