Redwood Corporation is considering two alternative investment proposals with the following data: What is the accounting rate of return for Proposal Y? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)

Question

Redwood Corporation is considering two alternative investment proposals with the following data:  What is the accounting rate of return for Proposal Y? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)

Quizplus · Accepted Answer

The accounting rate of return for Proposal X is 10% and for Proposal Y is 11.11%. As Proposal Y has higher accounting rate of return, it is the better choice.

Redwood Corporation Is Considering Two Alternative Investment Proposals with the Following