Lincoln Transportation Services is considering a capital expenditure proposal for the improvement of its distribution centre. The project would require a capital investment of $228,000; have a 6 year useful life with no residual value and generate net cash flows as follow:
Lincoln uses the straight line method of amortization on all capital assets.
Compute the accounting rate of return for this proposal

Question

Lincoln Transportation Services is considering a capital expenditure proposal for the improvement of its distribution centre. The project would require a capital investment of $228,000; have a 6 year useful life with no residual value and generate net cash flows as follow:
  Lincoln uses the straight line method of amortization on all capital assets.
Compute the accounting rate of return for this proposal

Quizplus · Accepted Answer

The Answer of Lincoln Transportation Services is considering a capital expenditure proposal for the improvement of its distribution centre. The project would require a capital investment of $228,000; have a 6 year useful life with no residual value and generate net cash flows as follow:
  Lincoln uses the straight line method of amortization on all capital assets.
Compute the accounting rate of return for this proposal

Lincoln Transportation Services Is Considering a Capital Expenditure Proposal for the Improvement