The Budget Place is considering opening a new store at a start up cost of $700,000. The initial investment will be depreciated straight line to zero over the 15-year life of the project. What is the average accounting rate of return?
A) 13.05 percent
B) 13.68 percent
C) 14.01 percent
D) 14.59 percent
E) 14.76 percent

Question

The Budget Place is considering opening a new store at a start up cost of $700,000. The initial investment will be depreciated straight line to zero over the 15-year life of the project. What is the average accounting rate of return? 
A) 13.05 percent 
B) 13.68 percent 
C) 14.01 percent 
D) 14.59 percent 
E) 14.76 percent

Quizplus · Accepted Answer

The Answer of The Budget Place is considering opening a new store at a start up cost of $700,000. The initial investment will be depreciated straight line to zero over the 15-year life of the project. What is the average accounting rate of return? 
A) 13.05 percent 
B) 13.68 percent 
C) 14.01 percent 
D) 14.59 percent 
E) 14.76 percent

The Budget Place Is Considering Opening a New Store at a Start