McAfee Automobiles 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

McAfee Automobiles 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:
 11ea8a42_4fc5_d0eb_8b44_2d73df86f839_TB5024_00 asset ($103,000 per year × 5 years)
Less: Total depreciation during operating life of the
 11ea8a42_4fc5_d0ec_8b44_b3af0241fe0b_TB5024_00 ARR of Proposal Y = Average annual operating income / Average amount invested
ARR = $15,800 / $252,000.00 = 6.27%

McAfee Automobiles Manufacturing Is Considering Two Alternative Investment Proposals with the Following