Tiberius Manufacturing is considering two alternative investment proposals with the following data:

Calculate the accounting rate of return for Proposal Y.(Round any intermediate calculations and your final answer to two decimal places. )

Question

Tiberius Manufacturing is considering two alternative investment proposals with the following data:

Calculate the accounting rate of return for Proposal Y.(Round any intermediate calculations and your final answer to two decimal places. )

Quizplus · Accepted Answer

C)
Calculation of accounting rate of return:
 11ea86ed_2acb_9ea7_8b27_3bdb3d70bc56_TB3056_00 asset ($105,000 per year × 5 years)
Less: Total depreciation during operating life of the
 11ea86ed_2acb_9ea8_8b27_cf3a2a425f42_TB3056_00 ARR of Proposal Y = Average annual operating income / Average amount invested
ARR = $11,400 / $266,000.00 = 4.29%

Tiberius Manufacturing Is Considering Two Alternative Investment Proposals with the Following