Rodriguez Inc.is considering a project that costs $200,000.The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation)to be $30,000.The project has a ten-year useful life and a residual value of $25,000.Assume Rodriguez Inc.uses straight line method of depreciation.
-Using the above information for Rodriguez,the accounting rate of return for the project is
(Round your answer to a whole percent)
A)51 percent.
B)22 percent.
C)67 percent.
D)40 percent.

Question

Rodriguez Inc.is considering a project that costs $200,000.The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation)to be $30,000.The project has a ten-year useful life and a residual value of $25,000.Assume Rodriguez Inc.uses straight line method of depreciation. 
-Using the above information for Rodriguez,the accounting rate of return for the project is
(Round your answer to a whole percent)
A)51 percent.
B)22 percent.
C)67 percent.
D)40 percent.

Quizplus · Accepted Answer

The Answer of Rodriguez Inc.is considering a project that costs $200,000.The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation)to be $30,000.The project has a ten-year useful life and a residual value of $25,000.Assume Rodriguez Inc.uses straight line method of depreciation. 
-Using the above information for Rodriguez,the accounting rate of return for the project is
(Round your answer to a whole percent)
A)51 percent.
B)22 percent.
C)67 percent.
D)40 percent.