The firm wants to earn a minimal average accounting return


A project has average net income of $4,160 a year over its 4-year life. The initial cost of the project is $65,000 which will be depreciated using straightline depreciation to a zero book value over the life of the project. The firm wants to earn a minimal average accounting return of 11.65 percent. Should the project be accepted or rejected? What is the AAR?

Solution Preview :

Prepared by a verified Expert
Finance Basics: The firm wants to earn a minimal average accounting return
Reference No:- TGS02488830

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)