Analyze average rate of return on average investment


Response to the following problem:

Fireproofing Solutions Inc. is considering the purchase of automated machinery that is expected to have a useful life of eight years and no residual value. The average rate of return on the average investment has been computed to be 15%, and the cash payback period was computed to be ten years.

Do you see any reason to question the validity of the data presented? Explain.

 

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Financial Accounting: Analyze average rate of return on average investment
Reference No:- TGS02121461

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