Penelopes paintings is buying a set of frames which cost


Penelope's Paintings is buying a set of frames which cost $121,000. These frames will be depreciated on a straight line basis to a zero book value over their eight year life. This set of frames is expected to generate net income of $16,000 a year for the first four years and $9,000 a year for the last four years. What is the average accounting rate of return?

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Financial Management: Penelopes paintings is buying a set of frames which cost
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