Best Cleaners is considering whether to purchase a delivery truck that will cost $25,000, last six years, and have an estimated residual value of $4,200. Average annual net income from the delivery service is estimated to be $3,360. Best Cleaners' owners seek to earn an accounting rate of return of 20 percent.
Required:
a. Compute the average investment cost and the accounting rate of return. (Round your percentage to one decimal place. Omit the "tiny_mce_markerquot; & "%" signs in your response.) Average Investment Cost $ Accounting Rate of Return %